The Royal Bank of Scotland Group is taking of a further £3.1bn ($3.8bn) provision in relation to various investigations and litigation matters relating to RBS’s issuance and underwriting of US residential mortgage-backed securities (RMBS).
This takes the total aggregate of such provisions to £6.7bn ($8.3bn) as at 31 December 2016.
The bank, 73% owned by the British taxpayer, says it continues to cooperate with the US Department of Justice (DoJ) in its civil and criminal investigations of RMBS matters, and RBS considers it appropriate to take this provision now in relation to those investigations as well as other RMBS litigation matters. The duration and outcome of these investigations and other RMBS litigation matters remain uncertain, including in respect of whether settlements for all or any of such matters may be reached.
RBS will announce its Full Year 2016 results on 24 February 2017.
Ross McEwan, RBS’s CEO, said: “Putting our legacy litigation issues behind us, including those relating to RMBS, remains a key part of our strategy. It is our priority to seek the best outcome for our shareholders, customers and employees.”