IT problems and PPI mis-selling costs RBS £300m

RBS will take a £300m (€382m) hit for an IT meltdown this summer, which left millions of people unable to access their money and for its role in mis-selling PPI.

IT problems at the group inconvenienced thousands of Irish Ulster Bank customers in particular.

RBS is expected to say in its half-year results that it is increasing the compensation pot for those who bought payment protection insurance by about £130m (€165m).

Following last month's computer glitch, it is setting aside £125m (€159m) to compensate customers and improve IT systems.

But RBS boss Stephen Hester said: “We have continued to make the bank safer and stronger as we clean up problems of the past.”

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