Royal Bank of Scotland Slumps into Second-Quarter Loss

Britain's state-rescued Royal Bank of Scotland tumbled into the red in the second quarter, after taking a large hit on litigation and conduct costs, it said Friday. 
RBS made a net loss of ?1.077 billion ($1.426 billion, 1.280 billion euros) in the three months to June 30, it said in a results statement. That contrasted with a profit after taxation of ?280 million a year earlier. 
The lender, which is 73-percent owned by the British government after a vast bailout during the global financial crisis, also cautioned over economic uncertainty after Britain's EU exit vote. 
It took a huge ?1.284-billion hit for legal costs in the reporting period, after setting aside more cash to cover a lawsuit brought by shareholders over its bailout and 2008 rights issue. 
The charge also included more money for compensation for the mid-selling of credit insurance, or payment protection insurance (PPI). 
Edinburgh-based RBS took a ?392-million restructuring charge, taking the total so far this year to ?630 million.