The Royal Bank of Scotland is “exceeding all milestones” in a long restructure process while posting a net loss of £3.6 billion ($6.17 billion) for fiscal 2009.

The result is a substantial improvement for the once mighty British banking institution, which posted losses in 2008 of £24.3 billion ($41.7 million).

CEO Stephen Hester says the group is one year into a five-year turnabout and had already achieved “significant steps along the path to recovery”.

The bank’s insurance division – which it has until 2013 to sell under an EU Commission agreement – reported reduced profit of £58 million ($99.5 million) on higher bodily injury claims.

Claims shot up 20% to £3.69 billion ($6.3 million) in 2009.