RBS Slips To £446m Loss After £1.3bn Charge
Royal Bank of Scotland (LSE: RBS.L - news) (RBS) slipped to a loss of £446m in its first quarter as it booked new restructuring and misconduct charges.
The taxpayer-backed bank said the pressure on its bottom line included £334m it had set aside for settlements related to the global investigation into the rigging of foreign exchange markets.
The figure is on top of the £399m it has already handed to US and UK regulators over the forex scandal.
There was another £100m charge announced in the first quarter results to cover compensation for mis-sold payment protection insurance (PPI).
The total litigation and conduct charge it announced was £856m while restructuring costs came in at £453m.
The restructuring costs mainly relate to a write-down in the value of US premises.
The bank's core business made an operating profit during the quarter of £1.63bn, up 16% on the same quarter last year, saying it benefited from "generally benign credit conditions".
It announced its results 24-hours after Barclays (LSE: BARC.L - news) added £800m to its provisions covering the forex inquiry.
First (Other OTC: FSTC - news) quarter profits fell 26%, reflecting that charge.