RBS Profit Wiped Out by U.K. Insurance Mis-Selling Scandal
- Bank books higher than expected bad loan charges in quarter
- RBS has made total provisions of 6.2 billion pounds for PPI
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Royal Bank of Scotland Group Plc’s profit in the third quarter was wiped out by a 900 million pound ($1.16 billion) charge tied to the long running insurance mis-selling scandal that has plagued most British lenders.
The state-controlled bank also paid the price for being one of Britain’s top lenders, with higher than expected bad loans. RBS’s future is tied to the U.K. economy, whose outlook is clouded by the uncertainty around Brexit. “We are very focused on controlling the controllable,” said Chief Financial Officer Katie Murray in a call with reporters after the results on Thursday. “Our preparations are in place.”