RBS and HSBC half-year figures due
The beleaguered banking sector will be back in the spotlight next week when RBS and HSBC face more questions about their recent difficulties.The potential cost of the humiliating IT meltdown that left thousands of RBS customers without access to cash will be looked for when the part-nationalised bank reports half-year figures on Friday.
The bank has promised affected customers a compensation deal, pledging that those from other banks will also be repaid "knock-on" costs after they were left out of pocket by a computer failure that caused chaos. The IT glitch lasted for days at NatWest and RBS but lingered on for around a month at its Irish arm Ulster Bank.
The market will be keen for an idea of the financial implication of the debacle, which came amid a difficult six months for the group.
RBS is among a number of banks globally that have reportedly been implicated in the rate-rigging scandal that cost rival Barclays £290 million in settlement costs, the loss of its chief executive Bob Diamond and a reputational battering. Chief executive Stephen Hester has also come under pressure since the IT crisis and said he would forgo his 2012 bonus worth up to £2.4 million in an attempt to calm anger.
Results from part-nationalised RBS are also expected to show a further hit from mis-selling payment protection insurance (PPI) after rival Lloyds Banking Group revealed more PPI pain in its half-year report.
Meanwhile, HSBC's involvement in the scandals that have rocked the banking industry may leave its mark on the company's half-year results on Monday.
Britain's biggest bank by market value survived the financial crisis with its reputation largely intact but it was dragged through the mud earlier this month by revelations that it inadvertently dealt with terrorist financiers, money launderers and drug cartels.
Its half-year results may make a provision against some of the estimated one billion US dollars (£642 million) costs of the scandal, which has already seen its Mexican arm fined 27.5 million US dollars (£17.7 million). And it may also take a hit ahead of compensation claims for a separate scandal that saw banks mis-sell complex financial products to unwitting small businesses after Barclays made a £450 million provision.
HSBC is also among the big banks to have mis-sold payment protection insurance. Lloyds last week increased its provision for PPI claims by £700 million to £4.3 billion and HSBC, which reported a further £300 million hit in its first quarter, may follow suit.
Results from part-nationalised RBS are also expected to show a further hit from mis-selling payment protection insurance (PPI) after rival Lloyds Banking Group revealed more PPI pain in its half-year report.
Meanwhile, HSBC's involvement in the scandals that have rocked the banking industry may leave its mark on the company's half-year results on Monday.
Britain's biggest bank by market value survived the financial crisis with its reputation largely intact but it was dragged through the mud earlier this month by revelations that it inadvertently dealt with terrorist financiers, money launderers and drug cartels.
Its half-year results may make a provision against some of the estimated one billion US dollars (£642 million) costs of the scandal, which has already seen its Mexican arm fined 27.5 million US dollars (£17.7 million). And it may also take a hit ahead of compensation claims for a separate scandal that saw banks mis-sell complex financial products to unwitting small businesses after Barclays made a £450 million provision.
HSBC is also among the big banks to have mis-sold payment protection insurance. Lloyds last week increased its provision for PPI claims by £700 million to £4.3 billion and HSBC, which reported a further £300 million hit in its first quarter, may follow suit.
© 2013 Press Association