RBS Logo
Reuters

The Royal Bank of Scotland has revealed that pre-tax profits in the third quarter rose to £1.27bn, from £1bn in the previous quarter, despite hiving off millions of pounds to cover litigation and conduct costs, including that for allegations over currency market manipulation.

In the bank's third quarter results statement, RBS cordoned off £400m (€509m, $640m) to cover the cost of investigating allegations that bankers sought to rig FX rates.

In total, RBS set aside £780m to cover all litigation and conduct related costs.

It has also added another £100m into the payment protection insurance compensation pot.

"In February I placed trust at the heart of my new strategy for our bank. We have taken the first steps towards that goal, with early progress in making RBS simpler, clearer and fairer," said Ross McEwan, CEO at RBS.

"We are reducing costs, and are on track to achieve our capital targets. But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us."