RBS (2)

The Royal Bank of Scotland (RBS) has posted a loss of £1.98 billion for 2015 - its eighth consecutive annual loss.

The bank, which is still 73% owned by the taxpayer, incurred £3.6bn litigation costs, set aside a further £600 million for Payment Protection Insurance (PPI) compensation, and set aside £2.9bn for restructuring costs.

Once these costs are removed, RBS' underlying profit was £4.4bn, which was still down on last year when it reached £6bn. However, its overall loss is an improvement on last year's £3.5bn.

Speaking to the BBC, RBS chief executive Ross McEwan said: "Low interest rates do hurt banks and its very clear interest rates will stay lower for much longer now.

"The UK and Republic of Ireland have quite strong economies... but you are seeing a slowing down in a number of economies around the world and low interest rates do hurt banks."

Mr McEwan said we would not take his £1m bonus for 2015, and would give half of his 2016 to charity. Overall, the amount spent on bonuses by RBS fell 11% £373m last year.