Another year of losses for RBS

Thursday, 24 February 2011 12:00 AM

By politics.co.uk staff

RBS made a £1.1 billion loss in 2010, it has announced, despite paying out bonuses worth £950 million.

Its bottom line showed an improvement on 2008 and 2009, when its losses were £24 billion and £3.4 billion respectively.

It was following the 2008 crash that RBS was taken into state ownership. The government now holds 84% of the bank.

Many have expressed frustration that the bank has not done more to make credit available to small- and medium-sized businesses, while continuing with its bonuses regime.

The state-owned bank has attracted criticism for continuing to incentivise its staff from some quarters.

Unite general secretary Len McCluskey said taxpayers would be "baffled" by today's set of figures.

"Because of our taxpayer funding RBS is gradually recovering from the mess caused by their greedy bankers. Yet the chancellor continues to tolerate the award of some £950 million in bonuses to the culprits, instead of ensuring our taxes do not become worthless," he said.

"It is well overdue that the £20 billion public bailout is acknowledged and the workers who are working tirelessly to ensure this company improves are protected, rather then the risk taking bankers."

RBS announced earlier this year it was reducing its total bonus pool from £1.3 billion to £950 million.

Yet many commentators feel the bank has not done enough to demonstrate it is adopting a new approach.

"To the man in the street it appears that banks are increasing their margins in the current low base rate environment, while restricting lending to many," Kevin Mountford of moneysupermarket.com said.

Making credit cheaper - without falling back into irresponsible lending - could help people to regain trust in financial institutions, he added.

Tags:
• banking crisis
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• economy
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• economy and finance