RBS takes further PPI provisions in Q3, but 'core' improves

Further provisions for mis-sold Payment Protection Insurance (PPI) and a hefty charge for own-credit adjustments pushed Royal Bank of Scotland (RBS) into the red in the third quarter, but the bank's underlying performance showed a robust improvement.

Further provisions for mis-sold Payment Protection Insurance (PPI) and a hefty charge for own-credit adjustments pushed Royal Bank of Scotland (RBS) into the red in the third quarter, but the bank's underlying performance showed a robust improvement.

The part-nationalised lender registered a statutory loss before tax of £1.26bn during the three months to September 30th, compared with a profit of £2.0bn in the third quarter of 2011. This was mainly attributable to a £1.46bn own-credit adjustment and a £400m bill for PPI redress.

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