Another £50 million has been added to the £125 million bill for the RBS IT failure of June this year, which caused carnage for the bank’s customers, including those at subsidiaries NatWest and Ulster Bank.
In June, a fault in the CA7 batch process scheduler caused millions of customer accounts to freeze, preventing people from sending or receiving funds. RBS blamed the issue on human error, but many claimed the company’s extensive use of complicated legacy IT systems was a major contributing factor.
The new costs have been attributed to customer compensation. RBS said in its note to investors today the extra £50 million cost in the third quarter was “primarily” associated with Ulster Bank.
But other parts of the business appear to have been hit by the incident. “In Q3 2012, gross new lending increased 3% compared with Q2, which was impacted by relationship managers efforts being diverted from lending due to the Group technology incident,” it read.
RBS also admitted to a “need to rebuild customer confidence following the group technology incident”.
Overall, the bank reported a loss before tax of £1.2 billion.
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A bit dull ain't it
Why, hello. You mearly adopted the darkness. I was born in it, molded by it.