RBS hands out £607m Bonus, despite making loss of £5.2bn
The Royal Bank of Scotland (RBS) has reported it handed out bonuses to senior employees amounting to a massive £607m, despite making a pre-tax loss of £5.2bn in 2012.
The bank, which is 82pc owned by the tax payer, made the loss after having to pay huge charges related to the mis-selling of products, as well as accounting. However RBS did reveal that overall business had improved in 2012, and disregarding the mentioned charges, the bank actually made operating profits of £3.46bn, up 1.6bn on the previous year.
This performance has meant that the bank is getting closer to a position which would be attractive for private investors. Chairman, Sir Philip Hampton said: “It is much closer now to being in the good financial health that would allow shareholders to receive a dividend and the government to start to sell its stake”
However, despite any optimism about the health of the bank, the public will be wondering how an institution, of which the vast majority is owned by them, is allowed to make such a huge loss and then spend an extra £607m on bonuses for senior employees.
Sir Philip added the following on the matter: “The bonus situation is toxic for everybody. The rates have been falling very substantially. Our bonuses now in our markets business, which is where all the big bonuses are, are 25pc, a quarter of what they were four or five years ago”.
Amid the public outrage, RBS have continued to defend themselves and their system, and are “trying to rebuild customer service and confidence, but that it couldn’t be done overnight”.
If you have any questions related to this article, or any other financial matter, contact one of our financial advisors whio will be happy to help.
Share this..
Related stories
Will Inflation Hit 5% By The End Of September?
As officials get ready to release inflation data for July this week, many experts are forecasting a rise to 4.1% from 3.8% in June. However, while this is bad news in itself it seems inevitable that it will get much worse in the short term. Many economists are looking to inflation to rise above 5% in September as the increase in energy bills only just starts to hit home. This will not only prom...
Read MoreHas the UK pound risen too quickly?
The CBI has today revealed a significant falloff in export orders in the UK over the last four weeks due in the main to a recent bounce in the exchange rate of the UK pound against other leading currencies. As the UK pound fell more than 30% against the dollar many people had pinned their hopes on an eventual recovery in the UK being linked directly to the exchange rate. However, amid signs that t...
Read MoreTUC attacks government spending cuts
In a damning assessment of the UK government's proposed budget cuts and tax rises the TUC has today issued a report suggesting that pensioners and single parents will bear the brunt of the forthcoming budget changes. Indeed the TUC believes that the poorest elements of the UK society will be hit a worrying 10 times harder than the rich. Not only does the TUC believe that direct cuts will impact...
Read MoreUK set to leave recession in the third quarter of 2009
Today's revision of the GDP figures between April and June were well received, even though the adjustment was minimal, and many analysts now believe the UK will move out of recession in the third quarter of 2009. HSBC is forecasting a 0.5% rise in the UK economy in the third quarter and a 0.7% rise in the fourth quarter. So will 2009 be the end of the UK recession?
While there are h...
MPC dissidents wanted rate hike
Two members of the Bank of England's monetary policy committee (MPC) voted in favour of an interest rate hike in April's decision, it has been revealed.Minutes of the April 5th meeting show that MPC members Tim Besley and Andrew Sentance preferred a quarter-point raise. All other members approved a hold at the present 5.25 per cent base rate.The decision to hold interest rates for the third consec...
Read More