2014 was an incredibly tough year for the Royal Bank of Scotland.
The 81% state-owned bank revealed in its 2014 results statement that it was hammered by a significant amount of litigation charges, a writedown from its Citizens unit and restructuring charges.
It total it reported a loss of £3.5 billion for last year.
Citizens, its retail and commercial banking services unit which was bought by RBS in 1988, caused a £4 billion write down.
In September last year, RBS launched the Citizens IPO. It originally planned to sell the shares at between $US23 and $US25. However, following a lukewarm market debut, RBS ended up selling shares for only $US21.50 each.
Meanwhile, in a bid to restructure the bank, the costs of doing so amounted to £1.3 billion. RBS also spent £2.2 billion on litigation and conduct provisions.
Meanwhile, RBS’ CEO Ross McEwan just became the lowest paid CEO on the FTSE 100.
Only a few hours prior to RBS announcing its 2014 results, he revealed that he will forfeit £1 million out of his salary.
“Ross McEwan has told the RBS Board he does not intend to take the proceeds from his 2015 role based allowance. Ross does not want this issue to be a distraction from the task of building a great bank for customers and shareholders,” said RBS in a statement.