PPI sees RBS profits tumble but mortgage lending rises

Ryan Fowler

October 24, 2019

Royal Bank of Scotland has reported a loss for quarter three after being hit by a £900m payment protection insurance redress bill.

However it wasn’t all doom and gloom as mortgage lending grew during the quarter to hit £8.6bn, up from £6.7bn in quarter two.

Overall RBS reported a pre-tax loss of £8m compared with a £961m profit in the same quarter in 2018.

RBS also revealed that it has set aside a further £55m to cover the cost of political and economic uncertainty caused by Brexit amongst other issues.

Katie Murray, chief financial officer at RBS, said: “These results demonstrate our solid underlying performance in a tough operating environment.

“We have seen strong growth across the business, and our sustained high levels of capital and liquidity mean we are well-positioned to support our customers in these uncertain times.”

The results are the last to be overseen by Ross McEwan who is departing the Edinburgh-based bank after six years at the helm. He will be replaced by Alison Rose next month.

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