NEW YORK (TheStreet) -- Royal Bank of Scotland (RBS) shares are down 4.5% to $11.87 in trading on Thursday after the company's fourth quarter financial statements showed a $5.4 billion fiscal 2014 net loss.
As a function of the disappointing results and as part of the company's move to refocus on private lending in Britain, the company announced that it is pulling out of 25 countries across the world, according to Reuters UK.
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The company is in the midst of a seven year restructuring plan that has seen the state-controlled bank shed more than $1.54 trillion in assets. The company has been under partial government control since the financial collapse of 2008 forced it to accept a 45 billion pound bailout from British taxpayers.
The company reported a narrower loss this quarter than it did during the same period last year, losing $9.2 billion this quarter versus the $14.1 billion it reported losing last year.
RBS said that it planning to significantly reduce its presence in Asia as well as pull out of operations in central and eastern Europe, Africa and the Middle East. As a result the company plans to cut thousands of jobs and as much as 60% of its assets.
"Let me be quite clear this marks the end of the standalone global investment bank model for RBS," CEO Ross McEwan told Reuters.
TheStreet Ratings team rates ROYAL BANK OF SCOTLAND GROUP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL BANK OF SCOTLAND GROUP (RBS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: RBS Ratings Report