|Deep in the red, Royal Bank of Scotland flags more job cuts
Britain's state-rescued Royal Bank of Scotland there will be more job losses, after announcing that the bank plunged into a near £9 billion loss last year on vast charges for litigation and the creation of a ‘bad bank’ division.
Despite another year of massive losses the bank set aside a bonus pool of £576m for bankers.
The bank also operates in Hong Kong.
The lender, which is 81-percent owned by the government after a huge bailout during the global financial crisis, added it would seek to slash its cost base by another 5.3 billion in the coming years and warned of more “inevitable'' job cuts.
Losses after taxation ballooned to £8.995 billion in 2013.
That compared with a loss of 6.055 billion in 2012, the bank said in a statement in London.
The loss was sparked by a £3.8-billion provision for a string of scandal-related charges and a £4.8-billion hit for the creation of an internal “bad bank'' unit called RBS Capital Resolution.
RBS added it would cut costs by £1 billion this year, and would slash its total cost base from £13.3 billion in 2013 to £8 billion over the next five years.
“Reducing costs and divesting businesses in the bank will inevitably result in reduced staff levels,'' said chief executive Ross McEwan in the earnings release.
“We do not yet have detailed plans for implementation and as always we will deal with such matters sensitively, talking to our staff before communicating any such changes.''—AFP/The Standard