Royal Bank of Scotland has failed to provide an estimate of its payment protection insurance mis-selling liabilities.
The bank’s interim management statement, published this morning, says that it cannot give a figure due to uncertainties surrounding the outcome of the judicial review by the British Bankers Association (BBA) of new FSA rules on PPI.
The statement says: “A decision on appeal of the court case, led by the BBA, has not yet been made as it relates to important other issues of retrospective regulation. The uncertainties around the outcome of the PPI action mean that, at this time, the Group is unable reliably to estimate any potential financial liability, although it could prove to be material.”
RBSI’s decision not to disclose a figure for its potential PPI liabilities follows yesterday’s announcement by the Lloyds Banking Group that it is setting aside £3.2bn for compensating customers who claim they were mis-sold the product.
The BBA has until next Tuesday to decide whether to appeal against the High Court judgement throwing out its application for a judicial review.
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