Part-nationalised lender Royal Bank of Scotland today posted a £3.6 billion loss for last year.

The bank, which is 84 per cent taxpayer owned, said the attributable deficit compared with a record £24.3 billion shortfall in 2008.

RBS has faced criticism for its controversial £1.3 billion reward plans for investment bankers and today said its remuneration pot would result in it paying a £208 million bonus tax to the Government.

Chief executive Stephen Hester said the bank had “exceeded all the principal milestones” set for the first year of its turnaround plan.

The payout to investment bankers was given the green light by UK Financial Investments (UKFI), the body set up to manage the Government’s stakes in banks.

Mr Hester, who has waived his own payout for last year, had previously said the bank would pay “the minimum we can get away with”.

He added today that the group’s core business – the activities that will stay part of the organisation after the restructuring plans – saw profits rise from £4.4 billion in 2008 to £8.3 billion last year.

Bad debt and other impairment charges across the group increased to £13.9 billion from £7.7 billion the previous year.

The bank said there were signs that its level of soured loans could have reached its peak, with the fourth quarter looking less dire for corporate clients.