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Provisions for liabilities and charges (Tables)
 6 Months Ended
Jun. 30, 2018
Provision for liabilities and charges  
Schedule for provisions for liabilities and charges

 

 

 

 

 

 

 

 

 

Litigation

 

 

 

 

 

 

 

Payment

 

Other

 

 

 

and other

 

 

 

 

 

 

 

protection

 

customer

 

 

 

regulatory

 

 

 

 

 

 

 

insurance

 

redress

 

DoJ (1)

 

(incl. RMBS)

 

Other

 

Total

 

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2018

 
1,053

 
870

 
3,243

 
641

 
1,950

 
7,757

 

Implementation of IFRS 9 on 1 January 2018 (2)

 

—

 

—

 

—

 

—

 
85

 
85

 

Currency translation and other movements

 

—

 
(5

)
(119

)
(4

)
(1

)
(129

)

Charge to income statement

 

—

 
19

 

—

 
3

 
111

 
133

 

Releases to income statement

 

—

 
(10

)
(1

)
(5

)
(15

)
(31

)

Provisions utilised

 
(152

)
(115

)
(90

)
(52

)
(100

)
(509

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 March 2018

 
901

 
759

 
3,033

 
583

 
2,030

 
7,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RMBS transfers (1)

 

—

 

—

 
(567

)
567

 

—

 

—

 

Currency translation and other movements

 

—

 

—

 
209

 
32

 
(24

)
217

 

Charge to income statement

 

—

 
46

 
1,040

 
23

 
93

 
1,202

 

Releases to income statement

 

—

 
(51

)

—

 
(305

)
(119

)
(475

)

Provisions utilised

 
(156

)
(104

)

—

 
(189

)
(806

)
(1,255

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2018

 
745

 
650

 
3,715

 
711

 
1,174

 
6,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

(1)

RMBS provision has been redesignated ‘DoJ’ and the remaining RMBS litigation matters transferred to Litigation and other regulatory as of 1 April 2018 to reflect progress on resolution.

(2)

Refer to Note 2 for further details on the impact of IFRS 9 on classification and basis of preparation.

 

Schedule of the sensitivity of the provision

 

 

 

 

 

 

 

Sensitivity

 

 

 

 

 

 

 

Change in
assumption

 

Consequential
change in
provision

 

Assumption

 

Actual to date 

 

Future expected

 

%

 

£m

 

Customer initiated complaints (1)

 

2,578k

 

371k

 

+/-5

 

+/-26

 

Uphold rate (2)

 
90

%
89

%

+/-1

 

+/-6

 

Average redress (3)

 

£
1,673

 

£
1,559

 

+/-5

 

+/-26

 

Processing cost per claim (4)

 

£
156

 

£
113

 

+/-20k claims

 

+/-2

 

 

Notes:

(1)

Claims received directly by RBS to date, including those received via CMCs and Plevin (commission) only. Excluding those for proactive mailings and where no PPI policy exists.

(2)

Average uphold rate per customer initiated claims received directly by RBS to end of timebar for both PPI (mis-sale) and Plevin (commission), excluding those for which no PPI policy exists.

(3)

Average redress for PPI (mis-sale) and Plevin (commission) pay-outs.

(4)

Processing costs per claim on a valid complaints basis, includes direct staff costs and associated overhead - excluding FOS fees.