RBS to make £600m - £900m extra provision for PPI after claims spike

Royal Bank of Scotland said a last minute higher-than-expected spike in claims for payment protection insurance claims would result in an extra charge of £600m to £900m in the third quarter.

The deadline for claims expired on August 29 and RBS on Wednesday said it had so far made provisions of £5.3bn of which £4.9bn had been utilised.

“The processing of claims is ongoing and the ultimate provision recognised could be above or below this range,” the bank said in a statement on Wednesday.