RBS reports loss of 3.47 bln pounds in 2014

Royal Bank of Scotland Group plc (RBS), a Britain-based commercial bank, Thursday announced that its net loss was 3.47 billion pounds (or 5.4 billion U.S. dollars) in 2014, compared with a loss of nine billion pounds in 2013.

The result was mainly attributed to a fair value write-down in relation to the reclassification of Citizens, RBS's U.S. unit, to disposal groups, said RBS in a statement.

The Edinburgh-headquartered bank saw an operating profit totaled 3.5 billion pounds in 2014, compared with an operating loss of 7.5 billion pounds in 2013. But it was lower than the market estimation consensus of a profit of 4.1 billion pounds.

Data also showed that RBS's revenue fell to 18.2 billion pounds in 2014 from 19.4 billion pounds in 2013, while slumping by 11 percent to 3.9 billion pounds in the fourth quarter of 2014. Operating costs, excluding restructuring, conduct and litigation expenses, dropped by 11 percent to 12.4 billion pounds.

The group's Common Equity Tier 1 ratio (CET 1), a gauge of financial stamina, was 11.2 percent at the end of December 2014, up from the 8.6 percent at the end of 2013, figures showed.

Ross McEwan, Group Chief Executive, said: "We expect our core UK/Irish businesses to continue to perform well, but with some income headwinds."

He noted: "We continue to deal with various conduct and litigation issues. Whilst we cannot predict when these will be resolved it is possible that the costs relating to settling these could be substantial in 2015."

He announced it plans to cut costs by a further 800 million pounds this year.

RBS is currently 79 percent-owned by the British taxpayer after a government's capital injection in 2008. (1 pound = 1.55 U.S. dollars) Endit