By Margot Patrick
LONDON-- Royal Bank of Scotland Group PLC on Thursday posted a
GBP3.47 billion ($5.39 billion) net loss for 2014 after writing
down the value of part-owned U.S. unit Citizens Financial Group by
GBP4 billion.
The 80% state-owned bank said its seventh consecutive loss,
narrower than last year's GBP9 billion, was the result of several
one-off charges. In addition to revaluing Citizens, RBS had GBP2.2
billion in conduct and litigation charges and GBP1.3 billion in
restructuring costs.
"These results make clear that underneath the conduct,
litigation and restructuring charges, we have strong performing
customer businesses that are geared towards delivering sustainable
returns for investors," Chief Executive Ross McEwan said.
RBS has radically scaled back its size and ambitions since it
needed a series of government bailouts to survive 2008's financial
crisis. Its shares closed at 403 pence Thursday, well below the
roughly 455 pence price needed for the government to break even on
its investment.
In its effort to shed state ownership and conserve capital, RBS
has retreated from overseas operations to focus on U.K. retail and
commercial banking. It sold a 29% stake in Citizens last year in an
initial public offering and plans to fully exit the bank by the end
of 2016.
The bank on Thursday named Howard Davies as its new chairman
from Sept. 1, replacing Philip Hampton.
Write to Margot Patrick at margot.patrick@wsj.com
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