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RBS to pay out £125 million in compensation

RBS to pay out £125 million in compensation

Category: Banking

Updated: 03/08/2012
First Published: 03/08/2012

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Royal Bank of Scotland (RBS) has made provisions of £125 million to compensate customers affected by the technical issues which hit the bank in June.

Technical issues with a system upgrade resulted in nearly two weeks of payment disruptions for millions of RBS, NatWest and Ulster Bank customers.

The fiasco caused further embarrassment for the 80% state-owned bank which has fought to improve its image following a series of dramas, such as the payment protection insurance (PPI) scandal. An additional £135 million has been set aside to compensate customers who were mis-sold cover for mortgage, credit card and loan products.

News of the compensation follows a £1.5 billion half yearly loss for the bank, much higher than last year's loss of £794 million.

RBS chief executive, Stephen Hester, said: "We have continued to make the bank safer and stronger as we clean up problems of the past.

"And despite the tougher economy, these results show our ongoing businesses to be more resilient than before, with many further improvements underway."

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