RBS posts pre-tax loss of $7.9bn for 2012

28 February 2013

Royal Bank of Scotland (RBS) experienced a significant pre-tax loss in 2012, new figures have revealed.

Data published by the major British bank this morning (28 February) showed that its loss totaled £5.17 billion ($7.9 billion) last year - a markedly higher figure than the loss of £766 million recorded in 2011.

The lender - which is 82 per cent state-owned - admitted in a statement that 2012 had been a "chastening" period and attributed this negative movement in terms of its losses primarily to the fact it had to set aside a huge amount of money to deal with a number of scandals.

For instance, RBS had to budget for compensation claims relating to the mis-selling of payment protection insurance and interest rate swaps, while also putting funds aside to pay for its fines for its involvement in the Libor manipulation scandal.

Despite this large loss, group chief executive Stephen Hester insisted: "RBS is four years into its recovery plan and good progress has been made. We are a much smaller, more focused and stronger bank."

By Asim Shah

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