Banking giant NatWest has reported a full year operating loss of 拢351m - and is withdrawing from the Republic of Ireland.
Income across the group's retail and commercial businesses fell 10% on 2020 as subdued business activity and lower consumer spending were partially offset by strong balance growth.
The group - formerly the Royal Bank of Scotland Group - said its 2020 net impairment losses ran to 拢3.24bn on loans it expects might default in future. Much of that is due to to the impact of the Covid-19 pandemic.
But the bank cost reductions of 拢277m for the year, ahead of its 拢250m target.
NatWest confirmed it was intending to pay a final dividend and committed to regular capital returns for shareholders in the future. Last year regulators had told banks to pause dividends to preserve cash to help them cope with the impact of the pandemic.
It plans to pay 拢364m to shareholders, of which 拢225m will go to the Treasury, still its majority owner.
NatWest also said today it was withdrawing from the Republic of Ireland, saying its Ulster Bank arm there would not achieve an acceptable level of sustainable returns.
Business in Northern Ireland will be unaffected by the "phased withdrawal", while the group said it would try to ensure that job losses are minimised.
Chief executive Alison Rose said: 鈥淭he past year presented some extraordinary challenges for our customers, colleagues and communities.
鈥淒espite reporting a loss for the year, NatWest Group delivered a resilient underlying performance in a challenging operating environment.
鈥淭he bank continued to grow in key areas such as mortgages and commercial lending and our balance sheet remains strong, with one of the highest capital ratios amongst our 海角视频 and European peers.
鈥淲e cannot be certain of the long-term impact of the pandemic - but we can be certain that our bank will continue to support those who need it most as we build back better.鈥
There was no mention of reported plans .
Responding to the results, Hargreaves Lansdown's senior investment analyst Susannah Streeter said: "The winding down of Ulster Bank represents the most radical change on the Irish banking landscape since the 2008 financial crisis - the bank has been burdened with a big book of distressed mortgage loans."
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She said that while the plan puts 110 branches at risk of closure, talks with Permanent TSB and other potential buyers could lead to the rescue of some of the network.
And she added: "Although this radical pruning will be seen as a sad moment in the long history of Ulster bank on the island of Ireland, it is likely to be welcomed by investors as a prudent move towards sustained recovery for NatWest.
"NatWest still faces the long term challenge faced by all 海角视频 banks about how to make money when super low interest rates increasingly look like they鈥檙e here to stay.
"The bank, which is still 62% owned by 海角视频 taxpayers, after a 拢46bn bailout in 2008, is still the best capitalised bank in the 海角视频, but growth options are few and far between.鈥欌
Union leaders have expressed "deep concern" over the future of NatWest's Irish staff.
Unite national officer for finance Rob MacGregor said: 鈥淭oday is very disappointing for our colleagues working in Ulster Bank in the Republic of Ireland who are members of the Financial Services Union (FSU).
鈥淣atWest has declared its intention to exit the Republic of Ireland and so wind down Ulster Bank leaving 3,000 workers unsure of their futures. We send our support and solidarity to FSU in its fight to save jobs.
鈥淚t is a matter of deep concern not just for the staff, but the bank鈥檚 customers, given that Ulster Bank has roots stretching back to the 1830s.
鈥淲e call on NatWest to ensure that TUPE transfer of jobs will apply in all sales or disposals of assets that happen as a result of their decision to exit.
鈥淣atWest must allow Ulster Bank to engage with FSU and negotiate agreements that protect jobs and minimise any redundancies. Unite supports FSU鈥檚 demands and all those staff facing uncertainty today."
