Clegg urges RBS to show restraint over bonuses

Deputy Prime Minister Nick Clegg has warned taxpayer-owned Royal Bank of Scotland that it "shouldn't be dishing out ever larger amounts of money in pay and bonuses" as it announced pre-tax losses for 2013 of £8.2bn and a reduced bonus pot of £576m.

RBS: Some unknown risks of Scottish independence

The head of the Royal Bank of Scotland has told ITV News there are some unknown risks about Scottish independence.

In its annual report, the bank admitted that such move would be likely to have a "significant" impact on the group's credit rating as well its monetary and regulatory landscape.

RBS chief executive Ross McEwan told ITV News: "We are doing a bit of planning around the 'what ifs' and the 'could be' that could happen."

Read: Standard Life could quit independent Scotland

Read: Clegg urges RBS to show restraint over bonuses

RBS report highlights fears over Scottish independence

The Royal Bank of Scotland has highlighted the "political risks" posed by Scottish independence to its business, saying it could "significantly" impact the group's credit ratings.

Comments in its annual results also questioned whether the move would affect Scotland's status in the European Union.

During 2013, the focus on the question of potential Scottish independence from the UK has heightened and the Scottish government will be holding a referendum in September 2014.

A vote in favour of Scottish independence would be likely to significantly impact the Group’s credit ratings and could also impact the fiscal, monetary, legal and regulatory landscape to which the Group is subject.

Were Scotland to become independent, it may also affect Scotland’s status in the EU.

– RBS annual report

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RBS boss: Bankers' bonus pot a 'highly emotional issue'

Royal Bank of Scotland boss Ross McEwan has admitted that bonuses were a "highly emotional issue", but avoided questions on whether sums could be clawed back from those who underestimated the difficulties.

I understand it is a highly emotional issue to see bonuses paid in which we are still losing money.

The issue for me as a pragmatic executive is that I need to be able to pay what it takes to actually get people to do the job for us.

When you look at RBS, we of all banks have been the one who have been pulling the pay and bonus structures down, but I do need to be in the market to get people to do these jobs.

– RBS chief executive Ross McEwan

But he warned that his best staff were constantly being "tapped on the shoulder" by other institutions.

He said: "We do see the turnover of good people and I have got to say they are in demand."

Mr McEwan insisted that "no decisions" had been taken over whether the bank would pay packages that would breach the EU's cap on bonuses of 200% of salary.

RBS boss admits 'shock' over depth of bank's problems

The Royal Bank of Scotland boss has said that the depth of problems at the bank was still coming as a "shock".

Chief Executive of the Royal Bank of Scotland, Ross McEwan. Credit: Andrew Milligan/PA Wire/Press Association Images

Speaking to Radio 4's Today programme chief executive Ross McEwan said: "I think that people, including executives at the bank, did not realise how big a change process we had to go through to get this bank back into shape."It has been a real shock how much time it is taking to turn it round."

Read: Clegg urges RBS to show restraint over bonuses

Clegg: Loss-making RBS shouldn't give large bonuses

Nick Clegg has told Daybreak a loss-making bank such as the Royal Bank of Scotland "shouldn't be dishing out ever larger amounts in pay and bonuses".

Although the Deputy Prime Minister acknowledged the average amount of bonuses paid out by taxpayer-funded banks has been coming it down, he stressed: "It needs to continue to come down".

Mr Clegg said: "They are entitled to pay their staff what they want when they are standing on their own two feet - at the moment they are not.

"I actually said this to the chairman of NatWest bank recently - as long as you are there because the British public have been generous to keep you in existence, be restrained, be sensible, be responsible".

His comments came as RBS announced annual pre-tax losses of £8.2 billion.

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RBS announces changes to 'earn the trust of customers'

The Royal Bank of Scotland has announced it will make five changes to 'earn back the trust' of its customers.

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RBS is announcing five changes to begin earning back the trust of its personal and business customers from today (1/6)

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1. We will stop offering deals and products to new customers that we are not prepared to offer to our existing customers. (2/6)

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3. We will put business bankers back on the high street. We will have hundreds in our branches. (4/6)

Read: RBS reports annual pre-tax losses of £8.2bn