Royal Bank of Scotland (RBS) has reported a loss of £3.5 billion for 2014, following a £4 billion write-down on US operation Citizens.

Operating profit was £3.5 billion, compared with an operating loss of £7,500 million in 2013.

Statutory operating profit before tax, which excludes results from discontinued operations, was £2,643 million compared with an operating loss of £8,849 million in 2013.

RBS is still 79% owned by the taxpayer following its state bailout in 2008.

Gross mortgage lending increased by 37% year on year. RBS has now helped almost 15,000 customers buy their first or next home with the government-backed Help to Buy schemes since their launch in May 2013.

Chairman Philip Hampton will be leaving RBS in 2015. Howard Davies will succeed him; he will join the board at the end of June and take over as chairman on 1 September.

Ross McEwan, RBS chief executive, said: “Philip joined in 2009 amid the global financial crisis and immediately brought a clear sense of purpose and direction for the bank at a time of incredible uncertainty, both for the UK and RBS. His dedication to making this a great bank for the country served him well through the tremendous, but positive, change that RBS has undergone during his tenure. I want to express my personal gratitude to Philip for guiding me during my first year as CEO, and playing a key role in implementing the strategy that will take us forward. There is still work to do, but Philip will leave on a positive note, with RBS firmly focussed on serving its customers, and shareholders.

“What you see today is a bank on track and delivering on its plan. A bank that is determined to earn the trust of its customers every day. A bank that helps the smallest enterprises through to the largest companies grow and prosper. A bank that is determined to reward its shareholders for their support. And a bank that is able to deliver on our ambition to be number one for customer service and advocacy in the UK and RoI.”