Restructuring and litigation costs weigh on Royal Bank of Scotland as the state-backed bank reports its eighth straight full-year loss. Julian Satterthwaite reports.
RBS in the red again. The part state-owned bank posting a loss of just under two billion pounds. Restructuring costs and legal fees all taking a toll. That means it still hasn't made a profit since being rescued by the state at the height of the global financial crisis. Still little prospect of the government being able to sell its stake. IG's Alastair McCaig. (SOUNDBITE) (English) IG MARKET ANALYST, ALASTAIR MCCAIG, SAYING: "I don't think the Chancellor George Osborne has to worry about an IPO for Royal Bank of Scotland anytime soon, unlike Lloyds. An eighth year of losses, that's taking it up to a total of 51 billion pounds worth of losses over that time period." Since the 45 billion pound bailout RBS has been cutting costs and reorganising its business. The bank that finally emerges from this process will be much smaller, and largely UK focused. And now faces even more pressures on margins in current environment of ultra-low interest rates. IHS Global Insight's Jan Randolf. (SOUNDBITE) (English) IHS GLOBAL INSIGHT, DIRECTOR OF SOVEREIGN RISK, JAN RANDOLPH, SAYING: "It's I think ultimately they have been spending a couple of years raising their capital requirements by the regulators. Being fined for inappropriate behavior. They now face this world where borrowing costs are turning negative for them. So they have to look carefully, are they going to reexamine their business model?" RBS was once, briefly, the world's biggest bank by assets. As it keeps shrinking, those days already seem long gone.