rbs set aside further £465m for ppi

[Amethyst]

http://www.rbs.com/news/2014/01/rbs-...ng-update.html

Provisions for litigation and conduct related matters

• The Board of RBS has decided to provide £1.9 billion covering various claims and conduct related matters affecting Group companies, primarily those related to mortgage-backed securities and securities related litigation, following recent third party litigation settlements and regulatory decisions.
• An additional £465 million provision for Payment Protection Insurance redress and related costs. Q4 2013 claims experience has continued at previous rates (c.£225 million per quarter) rather than declining as anticipated and claims are now expected to continue for a longer period. The cumulative provision is £3.1 billion, of which £2.2 billion had been utilised at 31 December 2013. The remaining provision of £0.9 billion covers approximately twelve months of redress and administrative expenses.
• A further £500 million provision for Interest Rate Hedging Products redress and administration costs. The increase in provision reflects both higher volumes and anticipated redress payments, recalibration of our methodology based on experience during Q4 2013, and additional administration charges. The cumulative provision, including expenses, was £1.25 billion at 31 December 2013.

[Amethyst]

Re: rbs set aside further £465m for ppi

http://www.bbc.co.uk/news/business-25918998

RBS may face full-year losses of up to £8bn, after the bank said it needed another £3.1bn for claims relating to the financial crisis.

Shares in the 80%-taxpayer owned bank dropped 3% on the news.

RBS boss Ross McEwan said: "The scale of the bad decisions during that period [the financial crisis] means that some problems are still just emerging."

RBS also said its executive committee would not receive a bonus for 2013

Mr McEwan has already said he would not take a bonus for 2013 and 2014.


http://www.bbc.co.uk/news/business-25913324