Royal Bank of Scotland Group PLC said Thursday that it lost 1.8 billion pounds in the fourth quarter, or $2.9 billion, due to continued weakness in its loan portfolio and steep revenue declines in its global banking and capital markets divisions. For the full year, the company, which is now 82%-owned by the British government following its near-collapse in 2008, lost 2 billion pounds ($3.1 billion) compared to a loss of 1.13 billion pounds ($1.8 billion) in 2010. News reports attributed the wider 2011 loss, in part, to hefty loss provisions it took on its exposure to Greek debt.
At its U.S. subsidiary, the $131 billion-asset Citizens, the fourth-quarter operating profit rose 144% from the same period a year earlier, to $249 million, due improved credit quality, falling expenses and gains in both interest and noninterest income. For the full year, earnings increased 63%, to $769 million.
Citizens' return on equity for the quarter was 8%, compared to 3.3% a year earlier. It was the company's best quarterly performance in more than three years. For the full year its ROE was 6.3%, up from 3.6% in 2010.
