UK state-backed bank RBS reports £7 billion loss

Royal Bank of Scotland says it will not return to profit till 2018

By Ahmet Gurhan Kartal

LONDON (AA) - The Royal Bank of Scotland, one of the U.K.’s state-owned banks, reported Friday a giant loss of £7 billion ($8.77 billion) for 2016.

Already bailed out by the government since 2008, for about £58 billion ($72.6 billion), the bank said it would not return to profit until 2018.

"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," said RBS chief executive, Ross McEwan.

The loss, which is more than three times the amount of loss -- £1.98 billion ($2.48 billion) -- reported for 2015, was caused by legal and other one-off costs, the bank added.

The RBS was rescued with state bailouts during the financial crisis in 2008 after it lost control over its operations.

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