Royal Bank of Scotland (RBS), one of the U.K.'s "big four" banks, posted a massive £2.045 billion ($2.7 billion) net loss for the first six months of 2016 on Friday.
The adjusted loss had widened from a £179 million shortfall posted in the first six months of 2015. Shares in the lender were down 4 percent in morning trading in London.
"We've always been pretty upfront that we are in a sort of transitional period over 2015 and 2016. I think what you saw with today's results was very consistent with that: A billion pounds of pre-tax operating profit for the core business and then on top of that, a whole series of restructuring costs and provisions for legacy litigation and conduct issues that we've been pretty upfront about, that we continue to clean up," RBS Chief Financial Officer Ewen Stevenson told CNBC on Friday.
The U.K. government remains the majority shareholder of RBS after the bank was part-nationalized in 2008 in the wake of the global financial crisis.
Reuters reported shortly after the Brexit vote that the government had scrapped plans to sell stake in RBS and Lloyds Banking Group this year as a result, citing sources close to the treasury.