Royal Bank of Scotland strikes €3.6bn US mortgage settlement

Royal Bank of Scotland Group rose the most in two months in London trading after the bank took a £3.1bn (€3.6bn) charge in a step toward resolving a US probe into sales of mortgage securities.

The lender is continuing to co-operate with the US Department of Justice (DOJ) on its investigation, though timing of a settlement remains uncertain, the bank said yesterday.

RBS has taken £6.7bn of provisions related to as many as 15 mortgage investigations and lawsuits, and may face further charges.