RBS Pummeled After Loss Report

NEW YORK (TheStreet) -- Shares of Royal Bank of Scotland (RBS) were down over 7% in premarket trading on the New York Stock Exchange to $11.73, after the bank announced a huge loss for 2013, with operating earnings down as well.

RBS said its pretax loss for 2013 came to 8.243 billion pounds, "including regulatory and redress provisions of £3,844 million, and impairments and other losses of £4,823 million related to the establishment of RBS Capital Resolution (RCR)."

Royal Bank of Scotland in November announced the creation of RCR, which is the company's repository for "high capital intensive assets" that are being wound down.

Excluding losses and impairment charges related to RCR, the bank's 2013 operating profit was 2.520 billion pounds, down 15% from 2012.  Markets revenue was down 58% to 638 million pounds during 2013, "reflecting smaller balance sheet and reduced risk levels," while Retail & Commercial revenue was down 4% to 4.078 billion pounds.  Non-core losses were down 27% year-over-year, to 2.107 trillion pounds during 2013.

The bank trimmed its total assets to by 22% during 2013 to $1.028 trillion pounds as of Dec. 31.

In a short interview on the bank's website, RBS CEO Ross McEwan -- who took over the post from former CEO Stephen Hester in June -- said, "It is fair to say that this bank is much bigger than it needs to be because it's got the overhang of when it was the largest bank in the world, and we're no longer that.  And I have no aspiration to run the largest bank in the world.  My aspiration is to run the best bank in the UK, with international operations to support that."

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