PPI Claim News - 3/8/2012
PPI claims 'continue to impact RBS profit'
The misselling of payment protection insurance (PPI) is continuing to eat into the Royal Bank of Scotland's (RBS) profits, the firm revealed in its half-year results.
It reported a loss of £1.5 billion during this timeframe, with significant expenses including those resulting from the recent computer system glitch, as well as PPI claims and other missold financial products.
However, operating profit for the RBS Group still hit £1,834 million, with chief executive Stephen Hester claiming its results show the business is "more resilient than before, with many further improvements underway".
In the second quarter of the year, the firm increased its provisions for PPI refunds by £135 million, taking the cumulative amount resolving this scandal will cost the lender to £1.3 billion.
A total of £700 million of this cash had been paid by June 30th, the bank confirmed.
"The clean-up costs from past mistakes are steadily being put behind us, though [they are] still significant," Mr Hester added.
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.
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