RBS Q4 loss shrinks to 765 mn pounds

The Royal Bank of Scotland (RBS), in which the UK government owns majority stake, saw its loss narrowing down to 765 million pounds in the fourth quarter of 2009 and plans to dole out bonuses worth 1.3 billion pounds.

In the year-ago period, the banking major had suffered a loss of 24.3 billion pounds, it said in a statement today.

"We are one year into our five-year turn around plan and have taken significant steps along the path to recovery. The strengths of our core business are becoming clearer, while the legacy of losses and exposures from the crisis is running off," RBS Group Chief Executive Stephen Hester said.

Going by reports, the bank has decided to shell out a total bonus of 1.3 billion pound for last year.

"The bonus proposals represent the minimum necessary to retain and motivate staff and therefore to protect the value of taxpayer's substantial investment in the bank," RBS said.

The RBS board has reduced bonuses, after taking into account factors like taxpayers' support, recent financial performance and government's bonus tax.

In the wake of rising public ire against exorbitant pay packages for top banking executives, CEO Stephen Hester and deputy CEO Gordon Pell have waived their bonuses for 2009.

For the year ended December 31, 2009, RBS' loss narrowed down to 3.6 billion pounds. In the comparable period, the entity had incurred a loss of 24.3 billion pounds.