Royal Bank of Scotland is set to take a £2.5bn hit to its 2015 profits, this will be the bank’s eighth consecutive year of full-year losses.
In a trading update issued on Wednesday, RBS boss Ross McEwan said that various issues like a string of legal bills, compensation and a pension payment affected the bank’s performance.
The bank is also setting aside a further £500m to pay for the PPI scandal and another £1.5bn for bad housing debts in the US.
McEwan said: “I am determined to put the issues of the past behind us, and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean up the bank and improve our core businesses.
“We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long-term value for our shareholders.”
RBS is currently 73% owned by the government after it had to be bailed out during the financial crisis.