RBS To Pay 125m For IT Glitch

Royal Bank of Scotland (RBS) has put in reserve 125m to pay reward to customers affected by the new relapse in its P.C. systems.

Account holders at RBS and its NatWest and Ulster Bank subsidiaries faced intrusion for up to two weeks in June after a program ascent at the bank.

RBS expelled the reward figure as it reported a half-year loss of 1.5bn, compared with 794m a year earlier.

Much of the loss was caused by a 3bn accounting charge.

This was a outcome of the bank having to change the gratefulness of its debt.

The bank's revenues is to 6 months to 30 June fell 8% to 13.2bn.

Investors appeared to give the results a comfortable welcome, as RBS's shares finished Friday trade in London up 5.6%.

RBS arch senior manager Stephen Hester told BBC Radio 4's Today programme: "It is a flattering difficult outmost environment, but we regard we are creation great progress."

RBS moreover mentioned it had set in reserve a serve 135m to casing reward for customers who were mis-sold remuneration insurance insurance, receiving the complete up to 1.3bn.

In addition, it will pay out up to 50m to casing claims from tiny businesses who were mis-sold dilettante insurance, well known as fascination rate swaps.

The bank is 82% owned by the government, that indispensable to bail it out in 2008 and 2009 at the tallness of the universal financial crisis.

It voiced in May that it had repaid the final of the 163bn in crisis loans it received from the UK and US governments.

Mr Hester updated in a statement: "We have one after another to make the bank safer and stronger as we washed up problems of the past.

"And notwithstanding the tougher economy, these results uncover our continuing businesses to be more volatile than before, with many serve improvements underway."

RBS fixed that it had discharged a number of traders related to the Libor rate-fixing liaison that saw associate bank Barclays fined 290m in June.

RBS mentioned it was continuing to co-operate with investigations, but that it was not nonetheless probable to portion the future effect on the bank, such as the timing and amount of any fines or settlements.

The bank updated that during the half-year its staffing expenses fell 4% as it cut 5,700 jobs, essentially in its markets and general promissory note arm.

Mr Hester moreover told the BBC that the promissory note industry, "became a bit isolated from the public and it is forthcoming down to earth with a bump".

He mentioned it indispensable to change its enlightenment to put customers first.

RBS moreover fixed that the sales of shares in its Direct Line insurance business would take place in October.

The European Union ruled that it had to sell the business by the finish of 2014 as one of the conditions of RBS securing its bailout from the UK government.

Ian Gordon, researcher at brokerage Investec, welcomed RBS's ultimate results.

"While MPs and regulators concentration their energies on soundbites and gesture-politics, RBS administration continues to make utilitarian growth in conditions of change piece repair," he said.

However, pressure organisation Move Your Money UK, that is mission for larger remodel of the UK promissory note sector, was unimpressed.

"RBS results uncover only how basically injured our stream promissory note model is," it said.