RBS will make another loss after setting aside £2.5bn

Ryan Bembridge

January 27, 2016

The Royal Bank of Scotland will make another loss in 2015 after setting aside £2.5bn to cover past mistakes including the mis-selling of payment protection insurance.

Today RBS said it made an additional provision of £1.5bn related to litigation claims in the US against mortgage-backed securities, a further £500m was added to its fund to cover the PPI scandal and the bank announced that it will write down £498m from its private bank Coutts.

The cost of PPI has now reached £4.3bn.

Ross McEwan chief executive of RBS, said: “I am determined to put the issues of the past behind us, and make sure RBS is a stronger, safer bank.

“We will now continue to move further and faster in 2016 to clean-up the bank and improve our core businesses.

“We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long-term value for our shareholders.”

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