RBS reports £469m loss as restructuring costs rise

Litigation and conduct costs of £425 million include an additional charge in respect of the recent settlement with the National Credit Union Administration Board to resolve two outstanding lawsuits in the United States relating to residential mortgage backed securities.

Williams & Glyn restructuring costs totalled £301m including £127m of termination costs associated with the decision to discontinue the programme to create a cloned banking platform.

The Bank also confirmed that none of the proposals surrounding the sale of Williams & Glyn can deliver full separation and divestment by 31 December 2017. RBS must offload Williams & Glyn by this date as a condition of its £45bn bailout during the financial crisis.

RBS says it is therefore in discussion with HM Treasury, and expects further engagement with the European Commission, to agree a solution with regards to its State Aid obligations.

The Bank now anticipates a restructuring charge of around £1.5bn in 2016 compared with previous guidance of over £1.0bn, as a result of additional Williams & Glyn charges.

Across RBS' Personal & Business Banking, Commercial & Private Banking and Corporate & Institutional Banking franchises, it reported an adjusted operating profit of £1,331 million in Q3.

Within UK PBB, gross new mortgage lending of £7.9 billion was 12% higher than Q3 2015.