The loss was mainly attributed to £850m provision against PPI mis-selling claims and write downs on the value of its holding of euro zone debt.
The bank paid £390m in bonuses to staff in its investment banking arm, which also widened the loss of the bank, although it was much less than the amount £950m paid in 2010.
According to the bank, its total revenue for the year was down 10% to £26.6bn against the year before; despite a 20% fall in impairment charges and a hefty own debt gain.
For the financial year ended 31 December 2011, the company’s pretax loss was £766m, which was more than the £399m pretax loss a year ago.
RBS, which has 83% stake of the UK government, warned its investment banking arm that its investment banking revenue performance in 2012 ‘will remain market-dependent’.
