View more on these topics

RBS makes £2bn loss amid conduct charges

RBS-logo-700x450.jpg

Royal Bank of Scotland reported a £2bn loss in 2015 amid restructuring charges and costs linked to conduct failures.

However, losses were lower than in 2014 when the taxpayer-backed bank hemorrhaged £3.47bn.

Litigation costs included £600m more in provisions for the payment protection insurance misselling scandal, while restructuring costs came in at £2.9bn.

When these costs are stripped out, the bank delivered operating profit of £4.4bn versus £6bn in 2014.

RBS says: “The group is subject to a number of legal, regulatory and governmental actions and investigations. Unfavourable outcomes in such actions and investigations could have a material adverse effect on the group’s operations, operating results, reputation, financial position and future prospects.”

It adds: “In the past eight years, the group has dramatically downsized and simplified the scale and complexity of its operations as compared to its operations preceding and during the financial crisis.

“However, the group’s operations remain diverse and complex, and the group operates in legal and regulatory environments that expose it to potentially significant litigation, civil and criminal regulatory and governmental investigations and other regulatory risk.”

Reconstruction costs will remain high in 2016 and are expected to reach £1bn during the year.

Despite these losses RBS chief executive Ross McEwan has been awarded more than double his pay of 2014, when he took home £1.8m. His total pay, including bonus and benefits package, comes in at £3.8m for the year. Part of this increase is due to a long-term incentives plan from 2013 paying out.

Included in McEwan’s salary is £1m in pay, £1m in a fixed share allowance, £350,000 in pension, plus £1.3m in a long-term incentive award.

Recommended

7

Off target: Pressure grows on FCA over advice due diligence scrutiny

The FCA is facing pressure to ramp up its efforts to investigate advisers’ due diligence processes after almost two years of work culminated in a report just six pages long. The regulator published the findings of a long-awaited thematic review last week which revealed concerns advisers may be failing to adequately perform checks on the platforms […]

Aegon-Logo-Building-2012-700x450.jpg
2

Aegon reviews processes after charges error

Aegon is to make changes to how it communicates charges after admitting it sent conflicting information about a customer’s fund fees. Correspondence seen by Money Marketing between an adviser – who wishes to remain anonymous – and the provider shows total expense ratios differed across a range of funds when quoted three weeks apart. The adviser […]

Europe-European-Flags-EU-700.jpg
2

Sterling falls as Cameron announces EU referendum date

The pound is on-track for its largest one-day fall following the backing by several large groups for a Brexit, as Prime Minister David Cameron unveiled the date of the vote. At the weekend Cameron revealed the in-out referendum for the UK in the European Union will be held on June 23rd. The price of sterling versus the dollar […]

Inheritance tax – How to declare and who pays

By Kim Jarvis, Canada Life In this article we look at which forms personal representatives (PRs) need to complete and who actually pays the tax. To recap, under current rules, any part of the estate that falls within the available nil-rate band (NRB), currently £325,000, is taxed at zero. Anything in excess of the NRB is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Why after losing so much money are they still sponsoring six nations rugby?

Leave a comment