You are here: Home - Investing -

RBS faces £8bn loss for 2013

0
Written by:
28/01/2014
Royal Bank of Scotland is facing an £8bn loss for 2013 after it announced it needed an additional £3.1bn to cover litigation and mis-selling costs.

The bank surprised the market last night with an unscheduled statement, admitting it will require extra provisions on top of the £4bn-£4.5bn loss it will make from the separation of the ‘bad bank’ part of the business.
 
With the addition of these provisions the state-backed bank is set to make a total loss of around £8bn for the year to 31 December 2013.
 
Following the statement, which was made just before the market closed on Monday, the bank’s shares fell 2.5%. Shares subsequently rose 0.8% in early trading on Tuesday to 335p apiece.
 
The £3.1bn in provisions will be divided between the costs of litigations related to mortgage-backed securities in the US, payment protection insurance mis-selling, mis-selling of interest rate swaps to SMEs and other legal expenses.
 
As a result, chief executive Ross McEwan and eight members of his executive team will forfeit a bonus for this year, with McEwan also giving up his 2014 bonus.
 
The bank is also set to see a significant fall in capital levels as a result of these losses.

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • @YourMoneyUK All you need to know about the latest Current Account Switching winners and losers - hats off to Starl… https://t.co/fAyHhplpoP
  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…
  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…

Read previous post:
London open: Stocks inch higher after recent sell-off

UK markets opened slightly higher on Tuesday, although sentiment was still fragile as stocks rebounded from their worst levels in...

Close