RBS pays the price for ‘legacy conduct issues’

Royal Bank of Scotland has detailed the “material impact” of “conduct issues” as part of its 2012 annual figures, these include:

  • A £450 million charge in relation to Payment Protection Insurance (PPI)
  • RBS provided £50 million over structured collar products
  • A further charge of £650 million over interest rate hedging products

Penalties of £381 million will be paid for Libor and other trading rates following an agreement with the Financial Services Authority earlier this month.

Facts about Libor and the banking scandal

Click here for more on the Libor rate fixing scandal

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RBS announces £5bn losses

The Royal Bank of Scotland has announced losses of £5.16billion - a fifth consecutive annual loss. Chief Executive Stephen Hester described 2012 as a "chastening" year. It was also revealed the bank paid £607m in bonuses in 2012.