RBS Reaches I.T. Incident Settlement - Quick Facts

(RTTNews) - British lender Royal Bank of Scotland Group plc (RBS, RBS.L) has inked an agreement with the Financial Conduct Authority or "FCA" and Prudential Regulation Authority or "PRA" in the UK for failings regarding the 2012 I.T. incident. RBS has agreed a penalty of 42 million pounds with the FCA and 14 million pounds with the PRA. Both the payments are covered by provisions already made by RBS.

Philip Hampton, Chairman of RBS, said: "Our IT failure in the summer of 2012 revealed unacceptable weaknesses in our systems and caused significant stress for many of our customers. As I did back then, I again want to apologise to all customers in the UK and Ireland that we let down two and a half years ago."

Simon McNamara, RBS Chief Administrative Officer, said: "When I first arrived at RBS in 2013, my number one priority was to ensure that any investment in I.T. was targeted in the right areas. As a result, by the end of 2015 we will have invested an additional £750m in enhancing the security and resilience of our IT systems." McNamara added, "A lot has changed and much has been achieved already. Our systems are currently available to customers over 99.9% of the time. By any measure, this is some achievement. But, given the impact that any incident has on our customers, I want to do better."

The FCA and PRA note that RBS has paid 70.3 million pounds in redress to UK customers and 460,000 pounds to individuals and firms who were not customers.