27 Feb 2015

RBS warns of substantial conduct and litigation costs in 2015

British banking group RBS has drawn attention to its 'conduct and litigation' costs, saying it is 'possible that the costs relating to settling these could be substantial in 2015'.

Prolonged financial problems have meant that the bank has not been able to pay a dividend and says that it will speak to one of its regulators, the Prudential Regulatory Authority, by next year about the possibility of doing this. However, such talks will not be possible, according to its CEO, until it has dealt with the bulk of one of the main litigation issues facing it - a US investigation into the sale of mortgage-based bonds. Source: CityIndex