Royal Bank of Scotland Group PLC Update on Charges Related to PPI (1174L)
04 September 2019 - 04:01PM
UK Regulatory
TIDMRBS
RNS Number : 1174L
Royal Bank of Scotland Group PLC
04 September 2019
Update on charges related to Payment Protection Insurance
The Royal Bank of Scotland Group plc ("RBS") today provides an
update in respect of charges related to Payment Protection
Insurance ("PPI").
RBS has been implementing the FCA's policy statement for
handling complaints about the mis-selling of PPI since 2011. Under
the FCA's Policy Statement 10/12, the deadline for filing
complaints related to the mis-selling of PPI expired on 29 August
2019.
To 30 June 2019, RBS made provisions totalling GBP5.3 billion
for PPI claims of which GBP4.9 billion had been utilised.
The volume of claims received during August was significantly
higher than expected, with a further spike in the final days
leading up to the deadline of 29 August 2019. RBS therefore now
expects to make an incremental charge for PPI claims, in addition
to the provisions recorded to 30 June 2019, in the range of GBP600
million to GBP900 million in its Q3 2019 results, which takes into
account claims by the Official Receiver. The processing of claims
is ongoing and the ultimate provision recognised could be above or
below this range.
The estimated range amounts are preliminary and unaudited.
For further information, please contact:
Investor Relations
Alexander Holcroft
Head of Investor Relations
+44 (0) 207 672 1758
RBS Media Relations
+44 (0) 131 523 4205
Forward-looking statements
This document contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements that include, without limitation,
the words 'expect', 'estimate', 'project', 'anticipate', 'commit',
'believe', 'should', 'intend', 'plan', 'could', 'probability',
'risk', 'Value-at-Risk (VaR)', 'target', 'goal', 'objective',
'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and
similar expressions or variations on these expressions. These
statements concern or may affect future matters, such as RBS's
future economic results, business plans and current strategies. In
particular, this document may include forward-looking statements
relating to RBS in respect of, but not limited to: its regulatory
capital position and related requirements, its financial position,
profitability and financial performance (including financial,
capital and operational targets), its access to adequate sources of
liquidity and funding, increasing competition from new incumbents
and disruptive technologies, its exposure to third party risks, its
ongoing compliance with the UK ring-fencing regime and ensuring
operational continuity in resolution, its impairment losses and
credit exposures under certain specified scenarios, substantial
regulation and oversight, ongoing legal, regulatory and
governmental actions and investigations, LIBOR, EURIBOR and other
benchmark reform and RBS's exposure to economic and political risks
(including with respect to Brexit and climate change), operational
risk, conduct risk, cyber and IT risk, key person risk and credit
rating risk. Forward-looking statements are subject to a number of
risks and uncertainties that might cause actual results and
performance to differ materially from any expected future results
or performance expressed or implied by the forward-looking
statements. Factors that could cause or contribute to differences
in current expectations include, but are not limited to, the final
number of PPI claims and their amounts, legislative, political,
fiscal and regulatory developments, accounting standards,
competitive conditions, technological developments, interest and
exchange rate fluctuations and general economic conditions. These
and other factors, risks and uncertainties that may impact any
forward-looking statement or RBS's actual results are discussed in
RBS's UK 2018 Annual Report and Accounts (ARA), RBS's Interim
Results for H1 2019 and materials filed with, or furnished to, the
US Securities and Exchange Commission, including, but not limited
to, RBS's most recent Annual Report on Form 20-F and Reports on
Form 6-K. The forward-looking statements contained in this document
speak only as of the date of this document and RBS does not assume
or undertake any obligation or responsibility to update any of the
forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise, except to
the extent legally required.
MAR - Inside Information
This announcement contains information that qualified or may
have qualified as inside information for the purposes of Article 7
of the Market Abuse Regulation (EU) 596/2014 (MAR). For the
purposes of MAR and Article 2 of Commission Implementing Regulation
(EU) 2016/1055, this announcement is made by Alexander Holcroft,
Head of Investor Relations for The Royal Bank of Scotland
Group.
Legal Entity Identifiers
The Royal Bank of Scotland 2138005O9XJIJN4JPN90
Group plc
NatWest Holdings Limited 213800GDQMMREYFLQ454
The Royal Bank of Scotland 549300WHU4EIHRP28H10
plc
National Westminster Bank Plc 213800IBT39XQ9C4CP71
Ulster Bank Limited 213800BZ9V4RRA2IRN26
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END
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