RBS redress costs reach £2bn
The Royal Bank of Scotland recently revealed that it spent close to £2bn in redress costs for the third quarter of 2016; however the bank managed to maintain an operating pre-tax profit of £255m.
The majority of these costs were related to the redress of payment protection insurance (PPI) amounting to £1.1bn. Around £68m of the payments were made in relation to interest rate hedging products. RBS said the remaining redress costs of £623m predominantly related to bank account packages and tracker mortgages. This is a decrease however when compared to the second quarter of 2016 when the bank spent more than £2bn to pay back PPI.