Royal Bank of Scotland has posted a pre-tax loss of £1.2bn in the third quarter, as it sets aside a further £400m to cover claims related to the mis-selling of payment protection insurance (PPI).
The loss compares to a profit of £2bn in the third quarter of last year, and is partly attributable to a £1.46bn own-credit adjustment, as well as the hefty PPI bill. The total cost of the PPI scandal to the bank so far is £1.7bn. RBS' core operating profit for the quarter was £1.633bn, while its group operating profit was £1.047bn. Core income increased slightly from £6.03bn to £6.41bn year-on-year. The 82% taxpayer-owned bank also said it had had to pay out a further £50m to cover the cost of a technical failure over the summer which saw many of its customers unable to access the...
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