Turmoil in the credit markets cost Royal Bank of Scotland almost £2.9bn last year, the bank revealed Thursday as it promised that the integration of ABN Amro would rebuild its balance sheet.

UK Daily View: RBS profits up despite writedowns

• Peter Thal Larsen analyses the bank’s results

News of the writedowns – almost double the figure indicated in December – came as the bank predicted it would squeeze a third more in cost savings and revenue benefits from the Dutch lender it acquired as part of an €71bn (£54bn) break-up bid.