RBS announces £1.13bn annual loss

Majority government-owned bank reports losses of £1.13bn for 2010.

The majority government-owned bank Royal Bank of Scotland has announced its results for 2010, reporting a loss of £1.13bn.

This is an improvement on the banks figures for the previous two years; in 2009 the bank reported losses of £3.6bn, and £24.3bn in 2008.

However, this is a bigger annual loss than analysts had anticipated.

The 2010 figure has been largely attributed to the £1.1bn charge levied by the government's Asset Protection Scheme.

In the final quarter, the bank recorded a profit of £12m.

The government, which retains an 84 per cent stake in RBS, has stated that it will sell its holding.

It is expected that this will do so only after the publication of the Independent Commission on Banking report.

RBS has described the year 2010 as a "step change" in its performance.

Shares in the bank closed at 47.3p on Wednesday.

Barclays, in which the government does not hold a stake, reported £6.1bn profits for the same 12 month period.