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THE boss of the UK’s second biggest bank saw his pay package rise 5% to £4.2m 2007 – despite billions in losses from the credit crunch.

Royal Bank of Scotland chief executive Sir Fred Goodwin was paid a salary of £1.29m and a bonus of £2.86m in 2007, the bank’s annual report revealed.

RBS was one of the worst hit UK banks by the credit crunch, writing off £2.5bn last year from investments hit by the financial turmoil.

Despite the hit, the group managed to lift operating profits by 9% to £10.3bn.

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