RBS puts aside more money in “clean-up” operation

The Royal Bank of Scotland has put aside an additional £1.5 billion in relation to various US residential mortgage-backed securities (RMBS) litigation claims in Q4 2015.

It has also made an additional provision of £500 million in relation to PPI in the context of the recent FCA consultation paper CP15/39.

In its trading update, RBS set it had writing down £498 million in relation to its private bank Coutts.

RBS CEO Ross McEwan said: “I am determined to put the issues of the past behind us and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean-up the bank and improve our core businesses.

“We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long term value for our shareholders.”

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