RBS reports $2.7b loss, warns of fines over rate-rigging scam
LONDON (AFP) - State-rescued Royal Bank of Scotland (RBS) posted a third-quarter net loss of 1.384 billion pounds (S$2.73 billion) on massive accounting charges and warned it would likely face fines over the Libor rate-rigging scandal.
The loss for the July-September period compared with a net profit of 1.226 billion pounds in the same part of the previous year.
RBS, which is 81 per cent owned by the British government after a huge bailout amid the global financial crisis, was forced into the red after taking a vast 1.455 billion-pound charge on changes to the value of its debt.
The Edinburgh-based lender also took another 400 million-pound hit to compensate clients who were mis-sold insurance. That took its total bill for the payment protection insurance affair to 1.7 billion pounds.