Royal Bank of Scotland reports £7 billion annual loss

Royal Bank of Scotland (RBS) has reported a £7 billion annual loss, its ninth consecutive year in the red.

The lender, which is 72% owned by the taxpayer, lost billions due to restructuring, conduct and litigation charges.

Friday's figures take into account £10 billion in legacy costs, including £5.9 billion on conduct charges and a £2.1 billion restructuring hit.

The group revealed recently it had set aside another £3.1 billion ahead of an expected fine from US authorities - linked to the sale of mortgage-backed securities - which was included in the bank's results.

RBS has now notched up losses totalling more than £50 billion over the past eight years.

Chief executive, Ross McEwan, has ordered a £2 billion cost-cutting drive, expected to result in the loss of thousands of jobs. It will include £750 million of savings in 2017.

ITV News Business Editor, Joel Hills, has found out that Mr McEwan is planning to accept a £1m bonus for 2016 and there will be an unknown number of job losses.

Mr McEwan said: "The bottom-line loss we have reported today is, of course, disappointing but, given the scale of the legacy issues we worked through in 2016, it should not come as a surprise.

"These costs are a stark reminder of what happens to a bank when things go wrong and you lose focus on the customer, as this bank did before the financial crisis."

Mr McEwan said he expects the bank to be profitable by 2018.