RBS takes another £3.1bn hit for RMBS

Royal Bank of Scotland Group plc said its full year 2016 results will reflect the taking of a further £3.1 billion provision in relation to investigations and litigation relating to its issuance and underwriting of US residential mortgage-backed securities (RMBS).

This will take the total of such provisions to £6.7 billion.

RBS said it continues to cooperate with the US Department of Justice (DOJ) in its civil and criminal investigations of RMBS matters.

RBS emphasised that “further substantial additional provisions and costs may be recognised and, depending on the final outcome, other adverse consequences may occur.”

RBS CEO Ross McEwan 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.”