Royal Bank of Scotland posted a GBP 3.5bn loss for 2014, its seventh consecutive annual loss. In 2013, the investment bank reported a loss of GBP 9bn. Ross McEwan, RBS’s chief executive, warned that job cuts were imminent as the bank prepares to downgrade its operations to just 13 countries from 38 at the end of 2014. In 2009, shortly after receiving a hefty bailout from the British government, RBS was operating in 51 countries. Bank execs blamed the 2014 loss on a GBP 4bn writedown of its US division, Citizens, as well as GBP 1.9bn tax charge. Still, the bank handed out GBP 421m in bonuses last year. McEwan defended the bonuses, saying they were necessary to attract qualified people for “fairly technical jobs.” The bank is 79 percent owned by the British taxpayer.
Howard Davies was recently appointed RBS’s new chairman, replacing Philip Hampton. He will join the board in June before officially taking over the job in September.
