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RBS warns future misconduct charges may be higher than expected


Royal Bank of Scotland warned future costs relating to past misconduct could be substantially higher than expected after reporting a third-quarter loss due to restructuring and litigation charges.

RBS, 73 percent owned by the British government, reported a third quarter operating loss of 134 million pounds ($206 million), down from a profit of 1.1 billion the year before, hit by restructuring and misconduct costs.

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"Whilst legacy issues continue to be addressed, material further and incremental costs and provisions in respect of conduct and litigation related matters are expected, and could be substantially greater than the aggregate provisions RBS has recognised," the bank said in a statement.

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