Royal Bank of Scotland announces annual loss of £1.13bn

The Royal Bank of Scotland, which is largely owned by the taxpayer, is still in the red after announcing it made losses of more than £1.1bn last year.

It is however an improvement on the previous year when it lost three times that amount.

Its chief executive, Stephen Hester, says the bank has turned a corner and was right to pay bonuses this month.

Robert Peston reports.