RBS underlying profits in 2012 (when strip out all the bad stuff like fines for missellings and fiddling Libor) are double 2011's .
RBS chief executive Stephen Hester has declared that good progress has been made on the bank's recovery plan despite a sharp rise in losses.
RBS is four years into its recovery plan and good progress has been made.
We are a much smaller, more focused and stronger bank.
Our target is for 2013 to be the last big year of restructuring.
There will be important work still to do, but an increasingly sound base from which to work.
As the spotlight shifts to the ‘new RBS’ post restructuring, we are determined that it will show a leading UK bank striving to be a really good bank.
– RBS chief executive Stephen Hester
By serving customers well RBS can become one of the most respected, valued and stable of banks.
That is our goal.
Royal Bank of Scotland said it paid employees £607 million in bonuses in 2012, including £215 million for investment bankers, down from a total pot of £789 million in 2011.
The money to pay for the Libor fine was taken from the company's bonus payments.
Royal Bank of Scotland chief executive Stephen Hester has said 2012 was a "chastening" year for the part-nationalised lender.
RBS recorded pre-tax losses of £5.2 billion last year, a steep rise from £1.2 billion in 2011.
The full figures from the Royal Bank of Scotland reveal a pre-tax loss in 2012 of £5.16 billion.
The bailed out bank also announced an operating profit of £3.46 billion, up from £1.82 billion in 2011.
The Royal Bank of Scotland has announced an annual loss of just over £5 billion, higher than experts had predicted.
The announcement comes following a year of scandal featuring Libor fixing and the mis-selling of loan insurance.
It represents a fifth successive year of losses.
RBS is to released its full year financial results today. The state-backed bank has been rocked by its fair share of scandals in the past year. Here is a brief reminder:
- Fined £390 million for its part in the Libor rate-fixing scandal
- Had to put aside millions to compensate small business customers for the mis-selling of interest rate swaps
- Put aside an additional £400 million to pay for the mis-selling of PPI, bringing the total costs involved to £1.7 billion
Speaking to Daybreak, financial analyst Louise Cooper said she is expecting the RBS bonus payment to be down, as the bank releases its annual results today.
She said the money to pay for the Libor fine will be taken from the company's bonus payments.
It is thought there could also be announcements of company redundancies today.
As RBS prepares to announce its annual figures, there is speculation that the bank has hit further troubles in trying to offload the 316 branches to meet EU rules on state aid.
Following the collapse of the bank's sale to Santander, RBS is said to be looking at selling a minority stake to private equity and institutional investors to kick-start the auction process.
The bank has already cut its investment banking finance from £500 billion in 2008 to £300 billion.
RBS has also cut more than 5,000 jobs, with its investment arm now employing around 11,000 people.
- The bank could show further improvements with core profits of £6.3 billion, up from £6 billion in 2011
- Underlying group earnings to rise to £3.5 billion (previously £1.8 billion)
- Overall increase in core profits would be "underwhelming", a sign of difficulties in increasing corporate and personal lending
- Investment banking division is likely to show higher profits under boss John Hourican