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| Royal Bank of Scotland reports £2bn loss | Royal Bank of Scotland reports £2bn loss |
| (35 minutes later) | |
| Royal Bank of Scotland has reported a loss of £1.98bn for 2015, its eighth year of annual losses. | |
| The deficit is partly due to £3.6bn for litigation costs, including £600m to cover claims over the mis-selling of payment protection insurance. | The deficit is partly due to £3.6bn for litigation costs, including £600m to cover claims over the mis-selling of payment protection insurance. |
| The bank, which is still 73% government owned, set aside £2.9bn for restructuring. | The bank, which is still 73% government owned, set aside £2.9bn for restructuring. |
| Once these costs are stripped out, RBS recorded a £4.4bn underlying profit, down from £6bn a year earlier. | |
| 'Work to do' | |
| RBS said the fall in underlying profits was due to lower income from interest payments, | RBS said the fall in underlying profits was due to lower income from interest payments, |
| Chief executive Ross McEwan told the BBC's Today programme: "Low interest rates do hurt banks and its very clear interest rates will stay lower for much longer now. | Chief executive Ross McEwan told the BBC's Today programme: "Low interest rates do hurt banks and its very clear interest rates will stay lower for much longer now. |
| "The UK and Republic of Ireland have quite strong economies... but you are seeing a slowing down in a number of economies around the world and low interest rates do hurt banks." | "The UK and Republic of Ireland have quite strong economies... but you are seeing a slowing down in a number of economies around the world and low interest rates do hurt banks." |
| Mr McEwan added: "We still have a lot of work to do in the cost base of the business" | Mr McEwan added: "We still have a lot of work to do in the cost base of the business" |
| Last year RBS reported a loss of £3.5bn. | |
| Bonuses | |
| The money RBS pays out in bonuses to staff was reduced by 11% to £373m for 2015, and Mr McEwan said he would not take a £1m "role-based" incentive, which is paid on top of salaries by some banks. | |
| Mr McEwan also said that in 2016 he would give half of his role-based pay to charity. | |
| In August, the government sold a 5.4% stake in RBS at 330p a share, raising £2.1bn. | |
| The price was third below the 500p a share paid by the government when it took its stake in the bank during the financial crisis, and represented a loss of about £1.07bn. | |
| The price at close of trade on Thursday was 244p. |