Royal Bank of Scotland (RBS) has reported a loss of £8.2bn - its biggest since the year it was bailed out by the taxpayer - and announced plans to help restore customer trust.
The loss for 2013 included its previously-announced provisions for mistakes of the past, which continue to haunt RBS and the rest of the UK banking industry in the wake of the financial crisis.
Ross McEwan, RBS chief executive, said the loss was "sobering" and "huge" and promised reform would turn around not only its financial fortunes but also its treatment of the customer.
Ross McEwan is restructuting RBS Its share price fell 4% when the FTSE 100 opened for business.
The bank confirmed new cost savings of £5bn over the next four years - reported earlier by Sky News - with its focus shifting back to the UK and further away from investment banking.
It was its investment arm that accounted for most of its bonus pool for 2013, which had shrunk by 15% to £576m, though the scene was set for further reductions in later years as RBS said it would concentrate on serving personal and business customers.
The bank also announced it was lifting its proportion of UK assets to 80% of its business from 60% under pressure from the Government, which still holds a stake of over 80% in the lender, to concentrate on supporting the UK's economic recovery.
Mr McEwan said his revival plan would make the bank "smaller, simpler and smarter," shrinking from seven divisions to three.
He has not put a figure on the potential number of job losses his plans would entail.
The overhaul of its service and products for retail customers will see the Group outlaw different product rates for branch and online customers from mid-March.
Among its other pledges were bans on teaser rates for any product and an end to 0% balance transfers for credit cards.
The revival plan is designed to help get the bank into a position where it could return to private hands - likely to be some years away.
Following confirmation of the loss and bonus figures the deputy prime minister Nick Clegg told Sky News that RBS was a "loss-making bank" on a "life support system funded by the general public."
Mr McEwan defended the bonus handouts, saying: "We need to keep people engaged in the job they do all day every day - from the high street to those in our markets business in the United States.
"We need to pay these people fairly in the marketplace to do the job."
:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.
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