Five questions answered… on Royal Bank of Scotland’s PPI provisions

The cost of PPI mis-selling continues to rise.

RBS has set aside even more money to cover the cost of compensation claims for mis-sold PPI. We answer five questions on RBS’s PPI payouts.

How much more has RBS put aside to cover PPI mis-selling claims?

RBS has announced it will be setting aside a further £400m to cover future anticipated PPI compensation claims. 

It has also set aside another £50m to cover the cost of compensation from a recent computer systems failure which affected customers earlier in the year.

How much has the bank spent on PPI mis-selling claims already?

Including this latest fund, a staggering £1.7bn

What about other banks?  

In total, and including any latest provisions, the PPI scandal has cost UK banks £10.8bn. 

Lloyds banking group has also announced it has put aside a further £1bn of provisions to cover claims. 

What is RBS current financial position?

RBS, which is 80 per cent owned by the UK government, has reported a pre-tax loss of £1.26bn for the three months to 30 September, against a £2bn profit a year earlier. 

The bank is also bracing itself over possible steep penalties for any involvement it might of had in alleged manipulation of the Libor inter-bank lending rate. Barclays was recently fined £290 million for attempting to manipulate libor. 

Another big hit for the bank is a £1.5bn charge against its own debt due to an accounting rule that requires it to take a loss on increases in the value of its bonds. 

RBS's operating profits for the third quarter were £1bn, up from a £650m profit in the second quarter. However these figures discount the PPI mis-selling and other charges. 

What has RBS said?

Chief Executive of RBS, Stephen Hester, told the BBC: 

"The extraordinary challenges which RBS faced following the financial crisis are being worked through successfully"

"The five year restructuring plan is now in its later stages with important work still to do, including an emphasis on dealing with reputational issues now that the bank's safety and soundness has advanced so well."

Adding that the bank is too often was looked upon as putting the short-term interests of shareholders and staff above customers. 

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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#Match4Lara: Lara has found her match, but the search for mixed-race donors isn't over

A UK blood cancer charity has seen an "unprecedented spike" in donors from mixed race and ethnic minority backgrounds since the campaign started. 

Lara Casalotti, the 24-year-old known round the world for her family's race to find her a stem cell donor, has found her match. As long as all goes ahead as planned, she will undergo a transplant in March.

Casalotti was diagnosed with acute myeloid leukaemia in December, and doctors predicted that she would need a stem cell transplant by April. As I wrote a few weeks ago, her Thai-Italian heritage was a stumbling block, both thanks to biology (successful donors tend to fit your racial profile), and the fact that mixed-race people only make up around 3 per cent of international stem cell registries. The number of non-mixed minorities is also relatively low. 

That's why Casalotti's family launched a high profile campaign in the US, Thailand, Italy and the US to encourage more people - especially those from mixed or minority backgrounds - to register. It worked: the family estimates that upwards of 20,000 people have signed up through the campaign in less than a month.

Anthony Nolan, the blood cancer charity, also reported an "unprecedented spike" of donors from black, Asian, ethcnic minority or mixed race backgrounds. At certain points in the campaign over half of those signing up were from these groups, the highest proportion ever seen by the charity. 

Interestingly, it's not particularly likely that the campaign found Casalotti her match. Patient confidentiality regulations protect the nationality and identity of the donor, but Emily Rosselli from Anthony Nolan tells me that most patients don't find their donors through individual campaigns: 

 It’s usually unlikely that an individual finds their own match through their own campaign purely because there are tens of thousands of tissue types out there and hundreds of people around the world joining donor registers every day (which currently stand at 26 million).

Though we can't know for sure, it's more likely that Casalotti's campaign will help scores of people from these backgrounds in future, as it has (and may continue to) increased donations from much-needed groups. To that end, the Match4Lara campaign is continuing: the family has said that drives and events over the next few weeks will go ahead. 

You can sign up to the registry in your country via the Match4Lara website here.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.