£2bn annual loss for RBS
The Royal Bank of Scotland's shares have taken a dive, dropping 9% today as they announced their eighth consecutive annual loss. One of the reasons they're getting hammered, is because of 'past conduct' costs. There's also the small matter of restructuring, too.
RBS said that their losses for 2015 stand at £2bn, which remarkably, is an improvement on the £3.5bn from last year. The bank did confirm that they'd booked £3.6bn in conduct charges, which includes £2.1bn for the legal action in America that is hanging over them, which regards the selling of mortgage products.
And speaking of selling things, there's £600m more in provisions for PPI nonsense. That's a lot of money being drained, which could have so easily been avoided, and so typical of many banks at the moment.
"We continue to deal with a range of uncertainties," say RBS, adding that "substantial incremental provisions" could be added to the RBS group's balance sheet this year.
There's small good news. The bank said that they're making progress in sorting everything out, with nearly £1bn of costs taken out of the company, and a 10% rise in net mortgage lending, with £9.3bn of new loans.