Royal Bank of Scotland Group PLC on Wednesday warned it would take provisions totaling about £ 2.5 billion ($3.59 billion) in its full-year results to cover a range of issues including a looming settlement with U.S. authorities over the sale of mortgage-backed securities.

In an update to the market RBS said it would set aside an extra £ 1.5 billion to cover litigation surrounding the sale of toxic mortgage securities. A further £ 500 million will be provisioned to cover the wrongful sale of insurance product Payment Protection Insurance. The bank is also writing down the goodwill value of its private bank by £ 498 million.

RBS said it expects to have a full-year Core Tier 1 capital ratio of 15%. It said it expected the hit on capital "to be partially offset by a reduction in RBS's core-capital requirements."

The bank also said it would recognized a £ 3.5 billion liability related to it pension plan.

Write to Max Colchester at max.colchester@wsj.com

(END) Dow Jones Newswires

January 27, 2016 02:55 ET (07:55 GMT)

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