RBS posts £3.5bn loss. Can its newly appointed chairman help?

The state-owned bank has just reported its seventh consecutive loss

RBS has just reported a £3.5bn loss for 2014 – the UK state-owned bank’s seventh consecutive annual loss.

However, the good news is, RBS’ losses are down from £9bn in the previous year.

The loss for 2014 has been attributed largely to a £4bn writedown on the sale of Citizens – a US foreign exchange business.

RBS has now appointed Sir Howard Davies, the former chairman of the Financial Services Authority and head of the Airports Commission, as its new chairman.

Chancellor of the Exchequer George Osborne welcomed Sir Howard to the bank but warned that RBS should not give bonuses to its senior executives.

“In the context of RBS’s conduct fines in 2014, it is right that the bonus pool is down again. I would also expect that, as in the past, no executive directors or members of the executive committee will receive bonuses, despite improved profitability, Osborne wrote.

George Osborne’s letter to Sir Howard Davies pic.twitter.com/LYvYrVwP2j

— James Titcomb (@jamestitcomb) February 26, 2015

No bonus bonanza for RBA executives

In light of the losses, RBS chief executive Ross McEwan said he would not receive a bonus this year. However, the bank will still pay out £421m in bonuses, a pool 21% smaller than 2013.

In a statement, an RBS spokesman told Sky News: “Ross McEwan has told the RBS Board he does not intend to take the proceeds from his 2015 role based allowance.

“Ross does not want this issue to be a distraction from the task of building a great bank for customers and shareholders.”