RBS reports £7bn loss and says it will not make profit until 2018

Royal Bank of Scotland has reported losses of £7bn for 2016, taking its losses since its 2008 government bailout to more than £58bn.

The taxpayer-backed bank has also admitted it will not return to profit until 2018, indicating that it will report 10 years of losses before it returns to the black.

“The bottom line loss we have reported today is, of course, disappointing but given the scale of the legacy issues we worked through in 2016, it should not come as a surprise,” said the RBS chief executive, Ross McEwan, who was paid £3.5m for 2016.

RBS losses since 2008

The loss, the bank said, was caused by £10bn of one-off items, including £5.9bn for potential fines and legal costs, largely related to an upcoming penalty from the US Department of Justice for mis-selling toxic bonds in the run-up to the crisis.

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