RBS paid £1.3bn bonuses on profit of just £1bn

[Joanne98]

Source: Telegraph co uk

Royal Bank of Scotland paid its investment bankers £1.3bn in bonuses for making just £1bn in profit last year, not the record £5.7bn declared last week.

The state-backed lender's results show that £4.7bn of the investment bank's worst losses were hived off to the "non-core" division being wound down. Although the bank's split into "core" and "non-core" units has been well explained, the separation generously flattered the investment bank's numbers and allowed management to present it as a record year for the division.

Stephen Hester, chief executive, used the performance to justify the £1.3bn bonuses paid to investment bankers, at least 100 of which received more than £1m.

RBS's numbers show that impairments in the "core" investment bank totalled just £640m, helping it produce £5.7bn of the £8.3bn of profits made by the bank's ongoing businesses. By contrast, investment banking impairments dumped in the "non-core" bank totalled £4.7bn.

Read more: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7340087/RBS-paid-1.3bn-bonuses-on-profit-of-just-1bn.html

[scottsoperson]

1. bankers get

welfare

[DFW]

2. The bank got a lousy bargain

Instead of paying out £300 million more than they made, they could have paid me
a mere £150 million more than they made, and I would have been perfectly happy
with the deal.