RBS inches closer to privatisation; posts £5bn loss

RBS inches closer to privatisation; posts £5bn loss Zeebiz Bureau

New Delhi: Royal Bank of Scotland may opt for a partial privatisation after it posted an annual loss of more than £5 billion after the bank faced series of scandals.

According to reports, Stephen Hester, its chief executive has given strong signals that the bank will go for a partial privatisation next year.

“The time when it can be privatised … is coming much closer,” the RBS chief executive said.

Hester, admitted 2012 had been a "chastening" year after its £390m Libor rigging fine.

Its total losses since the 2008 bailout have now topped £34bn. However, the bank is still paying out £607m in bonuses in the coming weeks.

The bank warned that it faced further fines for its role in the Libor rate-rigging affair and that it was struggling to dispose of the more than 300 branches it is required to offload under EU state-aid rules.

It said it had informed Brussels it would probably need an extension to an end-of-year deadline to sell the branches.

With Agency Inputs