RBS Hit by Almost $3.6 Billion of Provisions
January 27 2016 - 3:00AM
Dow Jones News
By Max Colchester
Royal Bank of Scotland Group PLC on Wednesday warned it would
take provisions totaling about GBP2.5 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
GBP1.5 billion to cover litigation surrounding the sale of toxic
mortgage securities. A further GBP500 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 GBP498 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 GBP3.5 billion
liability related to it pension plan.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
January 27, 2016 02:45 ET (07:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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