RBS sets funds aside to cover Brexit uncertainty

RBS sets funds aside to cover Brexit uncertainty

Royal Bank of Scotland has set an extra 100 million pounds aside to account for possible bad loans as a result of Brexit uncertainty

The provision means RBS is concerned that its customers might become less able to pay their debts when Britain leaves the European Union in five months’ time.

While HSBC put aside $245 million (191.2 million pounds) at its half-year results to account for greater economic uncertainty, RBS is the first big UK bank to link the move to Brexit.

CEO Ross McEwan said RBS was taking into account the possibility of more negative outcomes from the Brexit negotiations, under new accounting standards that require banks to be better prepared for possible future losses.

“There’s a lot more uncertainty in the marketplace until we get agreement, and that’s what this is reflecting,” McEwan told reporters on a call, referring to the provision.

Published: by Radio NewsHub
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