RBS Slumps on Legal Costs From Past, Bleaker Outlook on Future
- Bank abandons plan to create standalone Williams & Glyn unit
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Royal Bank of Scotland Group Plc slumped after posting another loss and saying it will probably take even longer than expected to reach targets for profitability.
Britain’s largest taxpayer-owned lender faces mounting hurdles from Brexit, record-low interest rates, and costs for past misconduct that continue to plague the bank eight years after it required a taxpayer-funded bailout. The second-quarter net loss of 1.08 billion pounds ($1.4 billion) was more than quadruple what analysts had estimated, driven by expenses tied to a lawsuit over the bank’s 2008 share sale and a further provision in the payment protection insurance scandal.