Royal Bank of Scotland has warned that it could be facing a very difficult few years, as its losses plunged dramatically earlier this year due to its ongoing fines and misconduct charges. Ongoing fines and misconduct charges made some ongoing problems maybe until a few years later.
The taxpayer owns a 79% share in RBS and is now bracing itself for further fines and punishments for not only PPI mis-selling but also for their important part in the big manipulation of the global currency markets. The cost comes on top of the transatlantic settlement with all the major banks when a record £2.6bn worth of fines were levied against them, £400m of this has been laid at the door of RBS.
Other elements of the huge £856m mis-conduct charges included a £100 top-up to ongoing PPI mis-selling. Another £257m is for other mis-selling charges regarding packaged bank accounts.
The figure of £856m is only a latest estimate and this along with restructuring costs of £453m drove the bank to a £446m loss, compared to a £1.2bn profit from the same time a year earlier. The shares also fell 3% to 335p, below the 502p at which the taxpayer breaks even.