The Royal Bank of Scotland (RBS) is expected to report losses exceeding £7 billion for 2009. However the bank is still planning to pay bonuses, according to the Sunday Times.
Talks the organisation is currently involved in with the Treasury about its bonus scheme are anticipated to end in ten days.
Regardless of whether the bank announces losses of over £7 billion, it is expected that RBS will have a bonus pool of £1.3 billion approved by the Treasury.
The organisation receives backing from the government as it is 84 per cent state owned. It is also given support through a government-backed insurance scheme.
RBS's £14 billion bad debts have resulted in the firm's £7 billion losses, analysts have suggested.
Despite the large amount of losses, the bank's investment-banking arm is expected to generate billions of pounds of profits.
The bank was in the news this week as banking group Santander is expected to list its British division on the London Stock Exchange so it can bid for the company's branch network, the Sunday Times reported.
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