Royal Bank of Scotland (RBS) has reported an annual loss of £1.13bn for 2010, improving on the previous year but still falling short of analyst expectations.
Although the bank made an operating profit of £1.91bn, it was particularly hard hit by a £1.11bn tax charge.
Forecasts compiled by Bloomberg had estimated it would make a loss of £406.5m.
RBS has previously racked up losses of £3.6bn in 2009 and £24.3bn in 2008, when it was bailed out by the government.
In Q4, RBS made a profit of £12m, improving upon the £765m loss in the same period in 2009.
Meanwhile, the bank's impairment charges on bad loans also fell 33% to £9.26bn.
Chairman Philip Hampton says: "The return to operating profit reflects both the internal rebuilding process at RBS and the external recovery in market and economic conditions.
"We are still a good way from where we want to be in terms of our performance but 2010 represents another big stride towards that goal."
Data quality is key
Granted leave to appeal the judgement