RBS spends £38m on 'clean-up' so far

Royal Bank of Scotland (RBS) chief executive Stephen Hester has revealed the clean-up of the bailed-out bank has so far cost £38m.

Hester gave up his £1m bonus last week in the wake of a public backlash against his pay.

In an email to RBS staff, Hester said RBS is still in a "loss-making phase" having already spent £38m on reforming the bank, the Telegraph reports.

"Over the last three years we have generated over £33bn of pre-impairment profits from improving our core businesses," Hester said.

"This has allowed us to afford to take the costs of 'clean-up' from our risky inheritance, in loan losses, disposal costs and restructuring charges (£38bn so far).

"We are ahead of schedule in that clean-up; in fact, we have been able to spend money and accelerate it as the outside environment got worse."

He urged staff to continue the clean-up operation and to be "purposeful" and "calm".

"There is no doubt that our position in the spotlight makes the job harder. But the best way to deal with it is to prove the critics wrong," said Hester.