RBS in the red even without PPI settlement

Click to follow
The Independent Online

Royal Bank of Scotland insisted yesterday that it was not able to calculate its potential bill for having mis-sold payment protection insurance (PPI) after Lloyds was landed with a £3.2bn charge for its part in the scandal.

The RBS chief executive, Stephen Hester, said Lloyds's rivals were still grappling with the implications of its settlement with regulators, which was announced on Thursday.

Mr Hester said RBS thought that its share of the PPI market was about a third of that of Lloyds, suggesting that the Edinburgh-based lender could be liable to pay close to £1bn.

But even without making a provision for PPI, RBS went back into the red this year. The bank, which is 83 per cent owned by taxpayers, made a loss of £548m in the first quarter, compared with a £12m profit in the last three months of 2010.

Comments