RBS ups PPI provision as profits slump

Royal Bank of Scotland has upped its provision for payment protection insurance (PPI) by £400m, as it reported a pre-tax loss for the third quarter.

The high street bank has now put aside £1.7bn in total for PPI redress.

Over the three months to September, RBS reported a pre-tax loss of £1.26bn, down from £2bn over the same period in 2011.

Chief executive Stephen Hester said this morning that RBS still faced “many challenges”, but that the bank was making progress.