Tuesday 27 September 2016

RBS sets aside $2bn for US mortgage litigation

Published 27/01/2016 | 08:06

A logo sits on a sign outside an Ulster Bank branch, a unit of the Royal Bank of Scotland Group Plc (RBS), in Dublin, Ireland, on Thursday, Dec. 12, 2013.
A logo sits on a sign outside an Ulster Bank branch, a unit of the Royal Bank of Scotland Group Plc (RBS), in Dublin, Ireland, on Thursday, Dec. 12, 2013.

Royal Bank of Scotland said on Wednesday it would make a £4.2bn (€5.5bn) payment into its pension scheme due to changes in its accounting policy and would also set aside an extra $2.2bn for mortgage-related litigation in the United States.

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The bank said the extra provision from the litigation would reduce fourth-quarter profits by £1.5bn, while an additional provision for payment protection insurance mis-selling will cut profits by an extra £500m and a goodwill impairment charge would take off a further £498m.

The bank said the combined effect of this, plus other provisions and charges, would reduce its common equity Tier 1 capital ratio by 1.6pc.

Reuters

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