RBS records new multi-billion pound losses

Despite the figure, the result is significantly lower than the £24.3 billion loss recorded a year ago. The bank also confirmed it had made good progress on its five-year strategic plan, and announced, “The Group is ahead of its targets on every published measure.” 

 

“We are one year into our five-year turnaround plan and have taken significant steps along the path to recovery. The strengths of our Core business are becoming clearer, while the legacy of losses and exposures from the crisis is running of,” commented Stephen Hester, group chief executive. “RBS is being restructured and run to serve customers well, to be safe and stable and to restore sustainable shareholder value for all. That is our legal duty and it is our intention and desire. It is also the only way taxpayers will recover the support they have given us.”

 

Hester continued, “We have exceeded all the principal milestones we set for the first year of our plan. An £8.3 billion profit for 2009 in our Core businesses provides evidence that the new RBS can deliver sustainable earnings. RBS is also becoming safer and smaller more quickly than we expected. We have already completed 70% of our planned balance sheet reduction. Most importantly, our customer base remains loyal as we implement the changes to our business.”

 

Group chairman, Philip Hampton, echoed Hester’s sentiments. “The economic backdrop was the most difficult for very many years, though there was a gradual improvement as the year progressed. Viewed in that context, there are resilient aspects of our performance in another disappointing year of overall losses. At the heart of the Group are excellent businesses, thousands of talented people and millions of loyal customers.”

 

“The Board knows that while much was achieved in 2009, there is still much to do to rebuild our performance,” Hampton added. “We have no doubts that we will achieve this. The Group now has appropriate levels of new capital and our job is to make that capital work on behalf of shareholders.”

 

“In 2010, we will continue to focus on the recovery factors we can control, while effectively navigating the factors we cannot,” concluded Hester. “The case for investment in our Group will become simpler and clearer as our strategy and actions show continuing results.”

 

RBS’ financial results were published just days after the Financial Services Authority (FSA) announced it was investigating “certain aspects” of how the bank handles customer complaints.