Royal Bank of Scotland has set aside £400m to cover the costs of regulatory investigations into the manipulation of foreign exchange markets, its latest results reveal.
Yesterday, Barclays said it had made a £500m provision ahead of the outcome of the investigations, which are being carried out by the FCA, the Serious Fraud Office and the US Department of Justice.
Pre-tax profit at RBS rose 26 per cent during Q3 to £1.3bn, up from £1bn in Q2. Year-on-year profits were up from a £634m loss in Q3 last year.
The corporate and institutional banking division made an operating loss of £557m, mainly because of the funds reserved for the foreign exchange probe. In addition, PPI compensation payments topped £100m in the quarter.
RBS chief executive Ross McEwan says: “In February I placed trust at the heart of my new strategy for our bank. We have taken the first steps towards that goal, with early progress in making RBS simpler, clearer and fairer. We are reducing costs, and are on track to achieve our capital targets.
“But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers’ trust in us.”