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The incoming CEO of RBS will receive no bonus this year or next. | |
(35 minutes later) | |
The incoming chief executive of the Royal Bank of Scotland will take no bonus for his work in the role this year or 2014. | |
Ross McEwan, 56, who is currently head of the bank's retail arm, will take up the position in October with a £1m salary. | |
The announcement came as RBS announced pre-tax profits of £1.4bn in the first half of the year. | The announcement came as RBS announced pre-tax profits of £1.4bn in the first half of the year. |
This was up from a loss of £1.7bn the year before. | This was up from a loss of £1.7bn the year before. |
RBS chairman Sir Philip Hampton said running the bank was among the most challenging jobs in the business world. | RBS chairman Sir Philip Hampton said running the bank was among the most challenging jobs in the business world. |
"Five years on from its rescue, RBS is now a safe and strong bank," he said. | "Five years on from its rescue, RBS is now a safe and strong bank," he said. |
"Our focus is now on building a really good bank for our customers and shareholders, returning the bank to private ownership, and playing our full part in supporting the UK economy." | "Our focus is now on building a really good bank for our customers and shareholders, returning the bank to private ownership, and playing our full part in supporting the UK economy." |
The bank said Mr McEwan, who joined RBS from Commonwealth Bank of Australia in September 2012, would not take a bonus for 2014 or for the remainder of 2013. | |
Instead of a pension he is set to receive a cash sum each year equivalent to 35% of his salary. | Instead of a pension he is set to receive a cash sum each year equivalent to 35% of his salary. |
In the first half of the year the bank reported a group operating profit of £1.7bn, up 5% from the first half of 2012. | In the first half of the year the bank reported a group operating profit of £1.7bn, up 5% from the first half of 2012. |
Friday's figures marked the first two consecutive quarters of overall profit since 2008. | Friday's figures marked the first two consecutive quarters of overall profit since 2008. |
But the bank was forced to set aside another £185m pounds to compensate customers for the mis-selling of payment protection insurance, taking the bill for mis-selling to £2.4bn. | |
BBC business editor Robert Peston said the numbers showed the bank was much stronger than it was a few years ago, particularly in terms of the key measure of capital ratios. | |
"However, the profit performance isn't as impressive if you strip out funny accounting niceties," he said. | |
"Certainly a little bit of growth this year but that is the contrast between RBS and Lloyds - yesterday we saw significant profits growth at Lloyds but we are not yet seeing that at RBS. | |
"There is no doubt its retail banking operations in the UK can be a powerhouse again, but the row with the Treasury over whether the investment bank should be expanded or slimmed down has detracted fairly significantly from its operating performance." | |
Chancellor George Osborne has welcomed the appointment of Ross McEwan as the new chief executive of Royal Bank of Scotland. | |
The Chancellor said Mr McEwan had impressed with his vision of RBS as a strong, UK-centred corporate bank. |