RBS reports £3.5bn loss

Ross McEwan​, chief executive of the state-funded Royal Bank of Scotland has today said he will not take his £1m bonus, after the company posted a deficit of £3.5bn.

This is down from £9bn attributable loss in 2013. Operating profit totalled £3.bn for 2014, compared with an operating loss of £7.5bn in 2013.

RBS, of which the taxpayer has an 80 per cent stake, will still pay out bonuses of £421m. Chancellor George Osborne has written to new chairman Sir Howard Davies to say the bank must “remain a backmarker on pay and continue to show responsibility and restraint.”

Davies said: “Ross McEwan has set out a very clear strategy to create the number one bank in the UK for trust, customer service and advocacy. I look forward to working closely with him in order to achieve that ambition.”