RBS sees mortgage lending shrink 16%

Royal Bank of Scotland lent 15.9 per cent less to mortgage borrowers in the first quarter than it did a year earlier.

Publishing its first quarter results today, RBS revealed it lent £3.7bn to borrowers in the first three months of the year, down from £4.4bn in Q1 2014. However, the bank said applications were up 10 per cent year-on-year.

RBS’s mortgage book grew 3 per cent to £103.6bn over the quarter.

The bank revealed it had made a £446m loss in the first quarter of the year, after setting aside a further £334m for penalties relating to foreign exchange rigging.

It has set aside a total of £856m for litigation and conduct issues, plus £453m for restructuring costs. 

This includes £334m for forex investigations and litigation, and a further £100m for payment protection insurance misselling. 

It has set aside a further £257m for “other customer redress”, which it says mainly relates to investment advice and packaged bank accounts. 

In November RBS was fined £217m by the FCA for forex failings, alongside four other banks. RBS remains in discussions with other regulatory authorities over the conduct. 

The bank reported operating profit of £325m in the first three months of the year, down from £1.3bn in Q1 2014.