Belfast Telegraph

RBS sets £3bn aside to pay for clients' compensation claims

Royal Bank of Scotland is to set aside more than £3bn to cover litigation and customer compensation claims.

The sum includes £1.9bn to cover mainly US action over mortgage-backed financial products.

There will also be an extra £465m to cover a redress scheme for customers mis-sold payment protection insurance.

The group has set aside an extra £500m in relation to allegations over the mis-selling of products, known as interest rate swaps, to small firms.

There will also be an additional £200m of provisions "for various conduct related and legal expenses" when fourth quarter results are published next month, said the bank, which is 80% taxpayer-owned.

Belfast Telegraph