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RBS's net losses widen to £9B

  • RBS's (RBS) net losses deepened to £9B from £6.06B a year earlier, hurt by the setting aside of £3.8B for compensating clients for the mis-selling of products, and £4.8B of other impairments and provisions.
  • The bank's operating loss after items widened to £8.2B from £5.28B in 2012, missing consensus of £6.7B.
  • Revenue dipped 12% to £19.44B.
  • RBS intends to slash £5B ($8.34B) of costs during the next five years and cut jobs as part of a restructuring in which it will refocus on its U.K. activities and merge seven units into three.
  • The bank has also lowered its cost-to-income target to 55% by 2017 from 65% currently, which will necessitate cutting £50B of risk-weighted assets from its international banking and securities unit by 2020.
  • RBS reduced its 2013 bonuses to £576M from £679M, although given the bank's massive losses, the payouts are already causing controversy. (PR)
  • More positively, RBS is poised to raise £1.1B from the sale of its remaining 28.2% stake insurer Direct Line.
  • Shares are -3.9% in London.
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