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24 February 2011
Last updated at 02:25 ET
Royal Bank of Scotland (RBS) has reported a loss of £1.13bn for the full-year 2010, due in part to a £1.1bn tax charge - a bigger loss than analysts had been expecting.
However, this is an improvement on the £3.6bn loss the bank made in 2009, and the £24.3bn loss it made in 2008.
Money put aside for bad loans fell 33% against a year earlier, to £9.3bn.
The government still owns an 84% stake in RBS after bailing the bank out during the financial crisis of 2008.
Last week, Barclays bank reported profits of £6.1bn for 2010.
'Step change' For the final three months of 2010, RBS made a profit of £12m, compared with a loss of £765m in the final quarter of 2009.
The bank described 2010 as a "step change in our financial performance".
"The return to operating profit reflects both the internal rebuilding process at RBS and the external recovery in market and economic conditions," said chairman Philip Hampton.
"We are still a good way from where we want to be in terms of our performance but 2010 represents another big stride towards that goal."
Earlier this month, RBS said it would pay its investment bankers bonuses of about £950m for 2010 - down from £1.3bn the previous year.
Chief executive Stephen Hester will receive a £2.04m bonus - all in shares - with his salary frozen at the 2008 level of £1.2m.
Last year, Mr Hester declined to take his bonus of £1.6m.
RBS bought Dutch bank ABN Amro before the credit crunch in 2007, but the deal was a disaster and was a major factor in forcing the government to bail out the bank to tune of £45bn.
The government paid an average of 50.2 pence for each of the 90.6 billion RBS shares it bought to save the bank from collapse.
RBS shares closed at 47.3p on Wednesday.
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However, this is an improvement on the £3.6bn loss the bank made in 2009, and the £24.3bn loss it made in 2008.
Money put aside for bad loans fell 33% against a year earlier, to £9.3bn.
The government still owns an 84% stake in RBS after bailing the bank out during the financial crisis of 2008.
Last week, Barclays bank reported profits of £6.1bn for 2010.
'Step change' For the final three months of 2010, RBS made a profit of £12m, compared with a loss of £765m in the final quarter of 2009.
The bank described 2010 as a "step change in our financial performance".
"The return to operating profit reflects both the internal rebuilding process at RBS and the external recovery in market and economic conditions," said chairman Philip Hampton.
"We are still a good way from where we want to be in terms of our performance but 2010 represents another big stride towards that goal."
Earlier this month, RBS said it would pay its investment bankers bonuses of about £950m for 2010 - down from £1.3bn the previous year.
Chief executive Stephen Hester will receive a £2.04m bonus - all in shares - with his salary frozen at the 2008 level of £1.2m.
Last year, Mr Hester declined to take his bonus of £1.6m.
RBS bought Dutch bank ABN Amro before the credit crunch in 2007, but the deal was a disaster and was a major factor in forcing the government to bail out the bank to tune of £45bn.
The government paid an average of 50.2 pence for each of the 90.6 billion RBS shares it bought to save the bank from collapse.
RBS shares closed at 47.3p on Wednesday.
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