RBS to be fined for IT mishap, mis-selling scandals
Royal Bank of Scotland is expected to incur a 300m-pound one-off charge in relation to IT breakdowns at Natwest and two mis-selling scandals.
Royal Bank of Scotland is expected to incur a 300m-pound one-off charge in relation to IT breakdowns at Natwest and two mis-selling scandals.
According to an exclusive report by Mark Kleinman, the City Editor of Sky News, the bank will reveal details of the financial impact from these issues on Friday when it releases its first-half results.
The IT meltdown in June, which resulted in millions of customers of RBS and Natwest being unable to access their cash, will see the bank take a £125m charge relating to compensation and costs to improve its computer systems.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In regards to the payment protection insurance (PPI) mis-selling scandal, the bank is expected to increase its provisions for compensating victims by around £130m, taking the total hit to £1.2bn, of which the rest was recognised in the lender's results last year.
Meanwhile, the provisions for compensating small businesses that were wrongfully sold expensive interest rate hedging products is thought to total £50m. Barclays, meanwhile, revealed last week that it took a £450m hit in the first quarter for that issue.
Shares were trading 5.23% lower at 204.13p by 14:37 on Thursday, pressured down further by rumours that the government, which already owns an 83% stake, is considering nationalising the bank in an effort to kick-start lending to businesses.
BC
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
First-time buyer market rebounds as interest rates ease and mortgage affordability improves
The average first-time buyer is now 33, and will spend an average of £311,034 on their first property
By Daniel Hilton Published
-
Cash ISAs: why it could be your last chance to grab 5% tax-free savings
Savers using a cash ISA could face a double-whammy of interest rate cuts and tax reforms from April. Should you act now?
By Katie Williams Published