The Royal Bank of Scotland reports a £2.04bn loss for the early half of 2016 after repaying PPI and other legal costs amounting to more than £1.3bn
The taxpayer-backed bank also had to repay more than £630mn in restructuring costs. An undisclosed amount the bank had paid for its bailout package. RBS is 73% taxpayer-owned.
RBS’ loss had increased to £179m the previous year and analysts estimate the amount to rise even further the following year.
According to CEO Ross Mc Ewan, RBS is still “well-positioned” for a potential economic slowdown.
He said: “We are clearly in phase two of our strategy, where our focus is on drawing a line under many of the legacy issues that have plagued this bank, and transforming the core business so we can deliver consistent, sustainable profits and results for our shareholders and do great things for our customers.”
“This progress is important because it means we are well positioned to support our customers through the challenges that an economic slowdown poses for the country,” Mr McEwan added.
UK’s high-street banks are concerned that PPI bills can increase as the Financial Conduct Authority delayed the PPI deadline from the promised 2018 spring deadline to June 2019.
The biggest PPI mis-seller in the UK, Lloyds Banking Group, said it was disappointed as the industry would need to repay more respectively for their PPI refunds.
However, Lloyds had more efficient figures during its half-year report. It did not report any further additional repayments for its existing PPI bill.