RBS Hit by Raft of Charges
January 27 2016 - 3:10AM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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