Lloyds v RBS - two banks with different problems

Both banks were bailed out at enormous cost to the taxpayer. Now one has turned things around while the other is still suffering. Jill Treanor explains why

The contrast between bailed-out Lloyds Banking Group and Royal Bank of Scotland was thrown into sharp focus as the former paid out its first dividend since the banking crisis (and handed its boss an 11.5m pay deal) while the latter reported its seventh consecutive year of losses (and its boss waived his bonus).

Why the difference? Because they started in different places. After their bailouts in 2008 and 2009, the taxpayer had a 43% stake in Lloyds and owned 81% of RBS. The government's controlling stake in RBS made it an easier target for politicians at the outset.