The bank confirmed £500m of cheaper mortgage lending had been facilitated by the Funding for Lending Scheme which represented 14% of all completions in quarter four of 2012.
Stephen Hester, group chief executive, said: “RBS is four years into its recovery plan and good progress has been made. We are a much smaller, more focused and stronger bank. Our target is for 2013 to be the last big year of restructuring. There will be important work still to do, but an increasingly sound base from which to work.”
The accounts also showed advances of £16bn of UK home loans including £3bn to first-time buyers for the year.
Despite positive home lending figures the bank made a pre-tax loss of £5.17bn which was in part affected by charges set aside for fines and redress claims.
It confirmed financial penalties of £381m in relation to the setting of LIBOR and other trading rates and £2.2bn for payment protection insurance claims.
