RBS has posted an attributable loss of £6.95bn for the year ended 31 December 2016, compared with a loss of £1.98bn a year ago.
The bank said that the results includes litigation and conduct costs of £5.87bn, restructuring costs of £2.10bn, the final Dividend Access Share (DAS) dividend of £1.19bn and Capital Resolution disposal losses and impairments of £825m, as well as a £300m deferred tax asset impairment.
The banking group posted an operating pre-tax loss of £4.08bn, compared to a loss of £2.70bn in the prior year. Adjusted operating profit declined 17% to £3.67bn.
Net interest income remained almost flat at £8.71bn, while total income dropped 2.5% to £12.59bn from £12.92bn. Operating expenses dipped 1% year-on-year to £16.19bn, while adjusted operating expenses dropped 12% to £1.13bn.
The bank's personal & business banking (PBB) unit includes two reportable segments- UK Personal & Business Banking (UK PBB) and Ulster Bank RoI.
The UK personal & business banking (PBB) arm posted operating profit of £1.38bn for the year ended December 2016, a 34% surge compared to £1.03bn in 2015. Adjusted operating profit increased 2% to £2.20bn from £2.17bn in the previous year.
The division’s net interest income increased 3% to £4.28bn from £4.15bn a year ago, while total income rose 2% to £5.29bn from £5.20bn a year earlier. Adjusted expenses dropped 1% year-on-year to £3bn.
Ulster Bank RoI posted operating profit of €24m for the year ended December 2016, a 93% decline compared to €362m in 2015. Adjusted operating profit was €280m, a 23% fall from €365m in the prior year.
The division’s net interest income remained almost stable at €501m, while adjusted operating expenses dipped 5% to €559m from €587m a year ago.
Commenting on the results, RBS CEO Ross McEwan said: “The bottom line loss we have reported today is, of course, disappointing but given the scale of the legacy issues we worked through in 2016, it should not come as a surprise. These costs are a stark reminder of what happens to a bank when things go wrong and you lose focus on the customer, as this bank did before the financial crisis.
“We made good progress throughout 2016 against our strategy. Our core business generated £4.2bn in adjusted pre-tax operating profit for the year – that’s an average of £1 billion per quarter for the last eight quarters.”