RBS £4bn Writedown Keeps It Loss-Making

Written By Unknown on Kamis, 26 Februari 2015 | 14.47

A £4bn writedown on its US business meant Royal Bank of Scotland (RBS) remained in the red in 2014, with the bank confirming a £3.5bn loss.

The annual loss marked the seventh consecutive year the part-nationalised bank has failed to achieve profitability however the figure was a marked improvement on 2013 when it lost £9bn.

RBS said it would have made a profit but for the money it had written off at its US bank Citizens, which was built up over 25 years, through what it called a "fair value adjustment".

The bank also confirmed a Sky News story of Wednesday evening that chief executive Ross McEwan was giving up his £1m "role-based allowance" for 2015, which is intended as a top-up to his £1m basic salary.

He had already decided not to take a bonus for 2014 and RBS said it was reducing the size of its total bonus pool for the year by 16% to £483m.

Sir Howard Davies, currently leading the Airports Commission, was to be its new chairman and he would replace Sir Philip Hampton from September, it added.

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