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RBS raises PPI claims bill by a further £400m | |
(35 minutes later) | |
Royal Bank of Scotland has set aside a further £400m to cover the cost of claims for mis-sold payment protection insurance (PPI). | |
It takes the bank's total charges for PPI mis-selling to £1.7bn. | It takes the bank's total charges for PPI mis-selling to £1.7bn. |
The figures were disclosed as RBS reported a pre-tax loss of £1.26bn for the three months to 30 September, against a £2bn profit a year earlier. | |
Despite the losses, chief executive Stephen Hester said that RBS was "making progress". | Despite the losses, chief executive Stephen Hester said that RBS was "making progress". |
RBS, which is 80%-owned by the UK government, has also set aside another £50m to cover the cost of compensation of the recent computer systems failure that hit customers. | |
The bank's bill for the computer glitch, which locked many RBS, NatWest and Ulster Bank customers out of their accounts, now totals £175m. | |
On Wednesday, Lloyds Banking Group revealed a fresh £1bn provision for PPI claims. Along with the RBS provision, the total bill for UK banks of the PPI scandal is now £10.8bn. | |
RBS's operating profits for the third quarter, which discount the mis-selling and other charges, were £1bn, up from a £650m profit in the second quarter. | |
The bank said it had seen lower bad debt charges, and re-stated that its restructuring after a near-collapsed during the global financial crisis would be completed in the next 18 months. | |
RBS is also embroiled in the scandal over alleged manipulation of the Libor inter-bank lending rate. The bank said it expected to enter into negotiations to settle some Libor investigations in the "near term", but that the amount of possible fines was uncertain. |