Part-nationalised UK lender Royal Bank of Scotland has reported a £3.6 billion loss for last year.
The bank, 84% taxpayer owned, said this compared with a record £24.3 billion shortfall in 2008.
RBS has faced criticism for its controversial £1.3 billion reward plans for investment bankers and today said its remuneration pot would result in its paying a £208m bonus tax to the British government.
RBS said chief executive Stephen Hester had chosen to give up his annual bonus amid public anger over the issue.
Mr Hester said the bank had 'exceeded all the principal milestones' set for the first year of its turnaround plan.
RBS bad debts 'may have reached peak'
He added today that the group's core business - the activities that will stay part of the organisation after the restructuring plans - saw profits rise from £4.4 billion in 2008 to £8.3 billion last year. Bad debt and other impairment charges across the group increased to £13.9 billion from £7.7 billion the previous year.
The bank said there were signs that its level of soured loans could have reached its peak, with the fourth quarter looking less dire for corporate clients. But it warned the financial circumstances of many consumers and businesses remain fragile and that current economic uncertainty 'could expose some customers to further difficulty'.
Shares in Royal Bank of Scotland closed over 6% higher at 38.38 pence in London this evening.
