World Economy
0

RBS Losses Multiply

RBS Losses MultiplyRBS Losses Multiply

Bailed-out Royal Bank of Scotland has reported huge net losses for 2016. The lender is still reeling from massive litigation and restructuring costs after being accused of mis-selling mortgage-based securities, DW reported. Royal Bank of Scotland said Friday its 2016 annual losses more than tripled to £6.95 billion ($8.7 billion). RBS, which was bailed out by the British government following the 2008 financial crisis, posted its ninth consecutive annual loss last year. The Edinburgh-based lender said it had been severely hit by litigation and conduct costs of almost £5.9 billion, including over its issuance of US mortgage-based securities and its role in the mis-selling of a UK insurance product. Restructuring costs last year amounted to £2.1 billion, RBS reported. “These costs are a stark reminder of what happens to a bank when things go wrong and you lose focus on the customer as this bank did before the financial crisis,” Chief Executive Ross McEwan said in a statement.

 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com