RBS Slides Into Red In its Third Quarter Due to PPI, Fines

November 1, 2016
by admin in PPI News

The Royal Bank of Scotland faces huge deficits and possible profit slides after it suffers its eighth consecutive loss last year and possibly this year. It had set aside billions of pounds for payment protection insurance mis-selling along with millions of pounds in fines to US authorities over the alleged mis-selling of mortgage securities before the 2008 financial crisis.

The sell-off had triggered a state bailout of RBS. It has a public majority stake even during the time it began to mis-sell PPI to consumers.

RBS had made a loss after taxes of £469mn in the last three months to September 30. Fines, litigation and other costs had it cut a further £425mn from its coffers — most losses the bank attributes to the US fines.

RBS shares had bogged down 2% at 192 during the noon.

Aside from RBS, Lloyds and Barclays said they will set aside a combined £1.6bn PPI package contribution  to recompense consumers further for this year.

The scandal — slated to end by 2019 with a Watchdog-scheduled deadline — may further balloon losses for the banking industry as the deadline extends one year after the initial 2018 schedule.