RBS slumps to loss after £900m hit from PPI

RBS Bank

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AFP

The Royal Bank of Scotland recorded losses in the third quarter after being hit by payment protection insurance costs.

The Edinburgh-based bank, where the government owns a 62{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} stake, added that the investment bank has a "particularly challenging" three-month period.

After charging 900 million pounds for PPI, it reported a pre-tax loss of 8 million pounds in the July-September period.

This is the final result before the departure of Ross McEwan CEO.

New Zealanders will be replaced by Alison Rose next month. She became the first woman to lead one of the UK's four largest banks. She joined the bank 27 years ago as a graduate trainee.

The bank reported a profit of 955 million pounds in the same month a year ago.

But the financial director Katie Murray said the results "show solid base performance in harsh operating environments."

"Core retail and commercial banks continue to perform well and we are making good progress toward this year's goals," she said.

However, the investment banking sector, known as NatWest Markets, reported losses of £ 1.93 million over the quarter, feeling the impact of "deteriorating economic sentiment on the world economy and falling bond yields."

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