RBS plunges £6b into the red

RBS reported a net loss of £6 billion (about $8.9 billion) in the most recent year, a much larger loss than the £2 billion recorded in the previous year.

The British government holds an 82% stake in the Royal Bank of Scotland following the state bailout of the bank in 2008, making it the majority owner.

RBS has announced plans to sell assets, reduce its investment banking business by cutting risky assets and eliminating jobs, and sell a stake in Citizens Financial Group — all intended to bolster capital levels and refocus the bank's operations.

RBS plans to sell a stake in Citizens Financial Group, the US lender it bought in 1988, as part of broader asset sales aimed at strengthening capital and narrowing its focus away from riskier investment-banking activities.

Chief executive Stephen Hester is leading the turnaround. The strategy described in the article focuses on selling assets, shrinking investment-banking operations, cutting risky assets and jobs, and improving capital levels.

Like many rivals, RBS is still struggling with the legacy of the global financial crisis and ongoing legal issues, which the bank says are complicating its recovery and contributing to recent losses.

According to the article, the asset sales and reductions in investment-banking activity are intended to bolster capital and reduce risky assets. For everyday investors, those moves signal a shift toward de-risking the bank and strengthening its balance sheet, though outcomes will depend on how the sales and restructuring are executed.

Key facts from the article: RBS posted a £6 billion loss last year (up from a £2 billion loss), the British government owns 82% of the bank after the 2008 bailout, management plans asset sales including a stake in Citizens Financial Group, and a strategy led by CEO Stephen Hester aims to shrink investment banking, cut risky assets and jobs to bolster capital.