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| RBS reserves £400m for currency probe | RBS reserves £400m for currency probe |
| (35 minutes later) | |
| Royal Bank of Scotland has set aside £400m to cover potential costs from an investigation into alleged manipulation of the foreign exchange market. | |
| The provision, revealed in its third quarter results, follows Barclays' decision to set aside £500m. | The provision, revealed in its third quarter results, follows Barclays' decision to set aside £500m. |
| Pre-tax profit at RBS came in at £1.27bn - up £260m on the previous quarter and far better than the £634m loss in the same period last year. | Pre-tax profit at RBS came in at £1.27bn - up £260m on the previous quarter and far better than the £634m loss in the same period last year. |
| RBS also said that it planned to retain Ulster Bank. | RBS also said that it planned to retain Ulster Bank. |
| The bank's chief executive, Ross McEwan, said that Ulster remained a core part of the bank following a strategic review into its future. | The bank's chief executive, Ross McEwan, said that Ulster remained a core part of the bank following a strategic review into its future. |
| He said early progress had been made towards his goal of making RBS simpler, clearer and fairer, adding: "But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us." | He said early progress had been made towards his goal of making RBS simpler, clearer and fairer, adding: "But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us." |
| The £400m provision for the currency investigation sent the corporate and institutional banking division to an operating loss of £557m. | The £400m provision for the currency investigation sent the corporate and institutional banking division to an operating loss of £557m. |
| RBS is among several banks being investigated by regulators over allegations that currency markets were rigged. | RBS is among several banks being investigated by regulators over allegations that currency markets were rigged. |
| Shares up | |
| The bank also set aside a further £100m to cover the cost of compensation for mis-sold payment protection insurance (PPI). | The bank also set aside a further £100m to cover the cost of compensation for mis-sold payment protection insurance (PPI). |
| Investors welcomed the improving performance for the bank, sending shares up 3.4% in early trading in London to 375.8p, valuing RBS at £41.8bn. | |
| RBS's overall position improved slightly in the three months to September 30, with its core tier 1 ratio - a key measure of financial health - up 0.7 percentage points to 10.8% in the quarter. | |
| However, it warned: "Ongoing conduct and regulatory investigations and litigation continue to present challenges and are expected to be a material drag on both earnings and capital generation over the coming quarters. | |
| "The timing and amounts of any further settlements or redress however remain uncertain and could be significant." | |
| The bank also said that it had released £801m of money set aside for bad debts - known as impairment provisions - in the quarter compared with a figure of £93m in the second quarter of 2014. That was considerably better than the £590m analysts had expected and reflected an improving economic picture in both the UK and Ireland. | |
| Total income fell 11% to almost £4.36bn, while operating expenses rose 5% to £3.88bn. Restructuring costs were down £205m to £180m compared with the previous quarter. | |
| Loans and advances to customers were up 2%, or £7.4bn, to £393bn, and customer deposits increased by £4.1bn, or 1%, to £405.4bn. |