LONDON Royal Bank of Scotland will set aside three thousand 600 million pounds to cover litigation in the United States , irregular compensation for selling insurance clients, pension costs and reorganization in its private banking business.
The charges represent a new effort by the chief executive Ross McEwan to clean RBS, so that the state can continue divesting its stake of 73 percent in the bank, rescued during the financial crisis at a cost of 46 billion pounds.
The impact is two thousand 500 million pounds in the fourth quarter.
“I am determined to overcome issues of the past and ensure that RBS is a safer, stronger bank. Now we will continue to move further and faster in 2016 to clean up the bank and improve our business Main “McEwan, who joined in October 2013 said.
As part of the additional provisions, the bank go two thousand 200 million dollars for mortgage-related litigation in the United States, that will reduce fourth-quarter earnings thousand 500 million pounds.
RBS faces investigations by the US authorities to charges he misled investors in mortgage-backed securities. The additional provision brings the total allocated to this problem five thousand 600 million , Chief Financial Officer Euan Stevenson told reporters in a conference call.
RBS also make a provision of 500 million pounds compared to improper sales of credit insurance , and 498 million by amortization of goodwill , and will make a contribution of four thousand 200 million a pension plan due to changes in accounting policies, although in the latter case will not affect the bottom of the results table.
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