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RBS reports £1.4bn loss and will repay government loans

The bank has confirmed it will pay back loans.

The Royal Bank of Scotland has confirmed that it will complete its loan repayments next week.

The company is 82 per cent state owned after a £45bn bailout from the taxpayer at the height of the financial crisis. The announcement was made along with its first quarter results, in which it reported a pre-tax loss of £1.4bn, compared with last year's loss of £116m.

The loss was exacerbated by changes in how RBS debt is valued.

The news comes after RBS set aside another £125m to deal with claims over PPI mis-selling.

The announcement follows a similar move by Lloyds Banking Group, which said recently that it will have repaid all its £157bn in loans by the end of the year.

Despite RBS confirming pay back, the Government will retain 82 per cent of shares in the bank.