RBS makes loss, with £856m of charges
With Barclays setting aside A LOAD of money for fines, RBS are at it now, announcing a loss for the first 3 months of the year thanks to £856m of charges.
The Royal Bank of Scotland prepped for penalties regarding foreign exchange rigging (not to mention the threat of criminal charges) by putting a further £334m aside. They're still in talks with various governments and regulation authorities about their dodgy forex dealings, and said in a statement: "These include advanced settlement discussions regarding the criminal investigation being conducted by the [US department of justice] and with certain other financial regulatory authorities and RBS expects that it will incur financial penalties in conjunction with any such settlements."
Of course, they've had to do a £100m top-up with regards to the cost of compensation for PPI mis-selling, which is a scandal that just won't go away - roughly £257m is to cover mis-selling of packaged bank accounts.
In addition to this, there's restructuring costs of £453m.
New RBS gaffer Ross McEwan has overseen a lot of job losses as he aims to transform and overhaul of the bank, and there is likely to be even more job cuts and that more conduct-related issues would bite the bank on the rump later in the year. He said: "I look forward to the day we can focus on the future rather than on legacy issues."
After the RBS got bailed out with £45bn of taxpayer's money, the bank have been trying to sort their mess out and haven't made a full profit since that time. 2014 was the bank's seventh consecutive year in the red, with total losses standing at somewhere in advance of £43bn.