Royal Bank of Scotland on Friday predicted its road to recovery will be "longer and bumpier" because of the eurozone debt crisis, tougher regulation and a weakened UK economy, and confirmed it probably won't meet return targets it had set for 2013.

Chief executive Stephen Hester said the "hostile external environment" will delay some of its plans, though he said the bank is still making good progress in the restructuring it started in 2009 after a government bailout, and is in strong financial shape to withstand further pressures.