PPI scandal costs RBS £1.7bn

Royal Bank of Scotland today revealed an additional £400 million charge to cover the cost of mis-sold payment protection insurance (PPI) claims, bringing the total bill to £1.7 billion.

PPI scandal costs 'Big Four' lenders over £10 billion

The Royal Bank of Scotland's announcement that mis-sold payment protection insurance (PPI) claims have cost the taxpayer-backed bank £1.7 billion has taken the total bill for Britain's "Big Four" lenders to more than £10 billion.

The PPI scandal is one of the worst to hit the UK's big four lenders
The PPI scandal is one of the worst to hit the UK's big four lenders Credit: Gareth Fuller/PA Wire

Yesterday, Lloyds Banking Group set aside another £1 billion to cover PPI claims, bringing the total to £5.3 billion, while Barclays announced an additional £700 million, giving it a total of £2 billion.

HSBC is forecast to post a more modest provision next week.

Hester: RBS working 'very hard to stand still'

Stephen Hester, RBS Group chief executive, said the Royal Bank of Scotland is "having to work very hard to stand still", adding, "We aspire to achieve much more".

Mr Hester said in the bank's interim management statement:

The extraordinary challenges which RBS faced following the financial crisis are being worked through successfully.

Beneath these headlines our people have been working hard at supporting our customers and rebuilding the capabilities of the core business, the future RBS that is emerging from our work.

In doing this we face the same strong economic and regulatory challenges as other banks and are having to work very hard to stand still in the face of these challenges.

We aspire to achieve much more; in short, to be running a really good RBS.

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PPI scandal costs Royal Bank of Scotland £1.7 billion

File photo of a woman walking past the headquarters of the Royal Bank of Scotland in the City of London
The Royal Bank of Scotland raised its PPI bill to £1.7 billion Credit: Johnny Green/PA Wire

The Royal Bank of Scotland (RBS) has revealed an additional £400 million charge to cover the cost of mis-sold payment protection insurance (PPI) claims, bringing the total bill to £1.7 billion.

RBS also said the cost of its recent IT glitch had risen by £50 million to £175 million.