RBS problems cause FTSE 100 to plunge

London’s top-flight index slipped further into the red as investors punished the Royal Bank of Scotland (RBS) following its ninth consecutive year of losses.

The FTSE 100 Index closed down 27.67 points to 7,243.7, with RBS emerging as the biggest faller on the market after revealing a £7 billion annual loss, one of the group’s biggest since its government bailout in 2008.

Shares in RBS were down more than 4%, or 11.2p to 238.2p, with chief executive Ross McEwan also ordering a four-year cost-cutting drive, expected to result in significant job losses and branch closures (see page 29).

RBS has now notched up losses totalling more than £55bn over the past eight years.

Jasper Lawler, senior market analyst at London Capital Group, said RBS’ dismal performance was a key factor in the London market hitting a two-week low.

Across Europe, Germany’s Dax was off 1.2% and the Cac 40 in France fell 0.9%.

Sterling gave up Thursday’s gains to drop 0.4% against the US dollar to 1.249 and fall 0.4% versus the euro at 1.180.