RBS faces £8bn loss after additional £3bn provisions

Royal Bank of Scotland is facing an £8bn loss for 2013 after announcing an additional £3.1bn of provisions for litigation and mis-selling costs.

The bank surprised the market last night with an unscheduled statement, admitting it will require extra provisions on top of the £4bn-£4.5bn loss it will make from the separation of the 'bad bank' part of the business.   With the addition of these provisions the state-backed bank is set to make a total loss of around £8bn for the year to 31 December 2013.   Following the statement, which was made just before the market closed on Monday, the bank's shares fell 2.5%. Shares subsequently rose 0.8% in early trading on Tuesday to 335p apiece.   The £3.1bn in provisions will be divided betw...