RBS Expects CET1 Capital Ratio Of Approx. 15% As At 31 Dec. 2015 - Quick Facts

(RTTNews) - The Royal Bank of Scotland Group plc (RBS, RBS.L) announced, as at 31 December 2015, RBS expects to report a Common Equity Tier 1 or CET1, capital ratio of approximately 15% and Tangible Net Asset Value or TNAV, per share of approximately 350 pence versus a CET1 capital ratio of 16.2% and TNAV per share of 384 pence as at 30 September 2015. The Group said its Pension accounting change and other pension related movements, US RMBS litigation provision, and PPI provision all combined is expected to impact TNAV by 3.6 billion pounds, CET1 capital ratio by 1.6%, and TNAV per share by 30 pence.

RBS will record a fourth quarter 2015 goodwill impairment charge of 498 million pounds in respect of its Private Banking business. This will reduce attributable profits in fourth quarter 2015 by 498 million pounds, but as an intangible item will have no impact on TNAV per share or the CET1 ratio.

RBS said the provision in relation to various US residential mortgage-backed securities (RMBS) litigation claims in fourth quarter 2015 will reduce attributable profits for fourth quarter 2015 by 1.5 billion pounds. The provision in relation to Payment Protection Insurance (PPI) in the context of the recent FCA consultation paper CP15/39 will reduce attributable profits for fourth quarter 2015 by 500 million pounds.