LONDON — Royal Bank of Scotland Group PLC Thursday announced a drastic restructuring and another capital increase after posting the U.K.'s largest-ever corporate loss due to a writedown of ABN Amro assets.

The Edinburgh-based bank, whose market capitalization has dropped over 90% in the past 12 months, is bundling 20% of its total assets, or GBP240 billion, into a non-core unit with a view to run down or dispose of them in the next three to five years. In this process, it will significantly reduce or sell its representation in 36 of the 54 countries in which it operates.

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