RBS earmarks $A4bn for 'clean-up'

The Royal Bank of Scotland announces a "clean-up" plan in which it puts aside more money for the PPI mis-selling scandal and for bad debts.

Royal Bank of Scotland (RBS) has set aside another STG2 billion ($A4.09 billion) to cover past mistakes as part of a raft of mammoth financial provisions.

The Edinburgh-based lender said it was putting aside STG1.5 billion to cover expected legal action on US residential mortgage-backed securities, as well as STG500 million extra for payment protection insurance (PPI) mis-selling compensation.

RBS said it was also pumping another STG4.2 billion into its pension scheme.

Ross McEwan, chief executive of RBS, 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."


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Source: AAP



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