Third quarter in red for Royal Bank of Scotland, which registered a heavy loss of £1,38 billion (1,72 billion euros) compared to the profit of 1,22 billion collected in the same period last year. £1,45bn of extra costs came from the evolution of the value of debt and £400m from disputes related to forced sales of credit insurance from 1,7 billion in total.
This type of insurance called PPI (Payment protection insurance), which made it possible to guarantee the repayment of a loan despite the loss of income due to illness, death and job loss, was automatically sold to customers for a long time, until have been banned in the UK. For Lloyds the costs amounted to a billion pounds, for Barclays 700 million. In total, for British banks it reaches over 10 billion euros.
Rbs, however, closed the three months with an operating profit growing to 1,04 billion, against 2 million a year earlier, and revenues up 6,3%, to 6,41 billion pounds. The Bank is controlled by the British State, which holds 81% of the capital after having saved it from the financial crisis.
