Arab Today, arab today rbs sets aside £3bn for claims conduct matters
Last Updated : GMT 18:42:31
Arab Today, arab today
Arab Today, arab today

Sending its share price sliding 2.21%

RBS sets aside £3bn for claims, conduct matters

Arab Today, arab today

Arab Today, arab today RBS sets aside £3bn for claims, conduct matters

Britain's state-controlled Royal Bank of Scotland
London - Arab Today

Britain's state-controlled Royal Bank of Scotland Britain's state-controlled Royal Bank of Scotland said Monday it has set aside more than £3.0 billion ($5.0 billion, 3.6 billion euros) for litigation and compensation claims here and in the United States. The total includes £1.9 billion to cover largely US action over mortgage-backed financial products, RBS said in a surprise statement that sent its shares sliding.
The bank added it has made another £465-million provision for compensation for the mis-selling of payment protection insurance (PPI), which covered repayments on credit products such as consumer loans or mortgages in Britain.
The Edinburgh-based lender said it would take another £500 million provision over the mis-selling of interest rate hedging products, known as swaps, to small businesses in Britain.
There will also be an extra £200 million for "various conduct related and legal expenses" when the bank publishes its fourth-quarter results next month.
Royal Bank of Scotland made the shock statement ahead of the stock market close, sending its share price sliding 2.21 percent to finish at 332.2 pence on London's FTSE 100 index. The FTSE ended down 1.70 percent at 6,550.60 points.
RBS remains 81-percent owned by the state, after it was rescued with £45.5 billion of taxpayers' cash at the height of the 2008 global financial crisis, making it the world's biggest-ever banking bailout.
Chief executive Ross McEwan noted on Monday that before the crisis began RBS was the biggest bank in the world.
"When the crisis broke, the bank was involved in a number of different businesses in multiple countries that have subsequently faced heavy scrutiny by customers and regulators," he said.
"The scale of the bad decisions during that period means that some problems are still just emerging. The good news is we are now a much stronger bank and can manage these costs while still supporting our customers."
The group said the extra £1.9 billion for mortgage-backed securities was announced "following recent third party litigation settlements and regulatory decisions".
An analyst for asset management group Investec warned that there may be further bad news to come.
"This is an exercise in pre-announcing the larger 'one-off' items" ahead of the bank's publication of fourth-quarter earnings on February 27, explained Ian Gordon.
"In truth most of the numbers are within expectations, albeit there is an element of acceleration in terms of recognition. Unfortunately...I very much doubt that these will be the last," he added.
Lawmaker Andrew Tyrie, Chairman of the Treasury Committee, warned of the potential cost to the taxpayer and small businesses.
"RBS is still paying a heavy price for past misconduct," he said. "So too are its customers and taxpayers. It is crucial for the recovery that lending, particularly to SMEs, is not constrained as a result.
"There is little prospect that the money needed to pay these fines can covered by claw-back, of either vested remuneration or deferred bonuses, from those responsible," he added.
"There should be in the future."
RBS also revealed that its PPI compensation claims had continued at the same rate, rather than an expected decline, and were anticipated to continue for a longer time than previously thought.
The group's total provision for PPI compensation now stands at £3.1 billion, of which £2.2 billion had been used up by the end of last year.
Last November, meanwhile, RBS announced plans to create an internal 'bad bank' to run down £38 billion of high-risk assets as the British government looks to return the rescued lender to the private sector.
New Zealander McEwan, who was formerly RBS head of retail business, was appointed as chief executive last August and took charge in October.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today rbs sets aside £3bn for claims conduct matters Arab Today, arab today rbs sets aside £3bn for claims conduct matters

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Egyptian tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Egyptian tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures

GMT 07:26 2017 Thursday ,23 February

A peek inside Qatar's 'gas capital of the world'

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise

GMT 09:55 2017 Monday ,20 February

Thailand 2016 growth up but below junta target
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday