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		</div><p>Royal Bank of Scotland has set aside another £2 billion to cover past mistakes as part of a raft of mammoth financial provisions.</p>
<p>The taxpayer-backed lender said it was putting by £1.5 billion to cover expected legal action on US residential mortgage-backed securities, as well as £500 million extra for payment protection insurance (PPI) mis-selling compensation.</p>
<p>RBS said it was also pumping another £4.2 billion into its pension scheme.</p>
<p>Ross McEwan, chief executive of RBS, said: “I am determined to put the issues of the past behind us and make sure RBS is a stronger, safer bank.</p>
<p>“We will now continue to move further and faster in 2016 to clean up the bank and improve our core businesses.”</p>
<p>The additional hit for US mortgage legal action, which is expected to be settled soon, takes its total to #3.8 billion, although RBS stressed this related only to civil claims and does not include any potential settlement relating to the Department of Justice or US Attorneys investigations.</p>
<p>Its PPI provision sees its total bill for the mis-selling scandal reach £4.3 billion and Mr McEwan said it was a lesson to the entire banking industry of the “importance of treating customers fairly”.</p>
<p>The bank, which is 73% owned by the Government, also revealed a £498 million write-down on the value of its troubled private banking business.</p>
<p>Mr McEwan said: “We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues.”</p>
<p>Mr McEwan confirmed the bank is set to report another loss for 2015, with the latest provisions and write-downs adding to the impact of wider restructuring at the bank.<br />
Shares dropped more than 4%.</p>
<p>While the pension fund payment will largely come from reserves, the remaining £2.5 billion in provisions and write-downs will directly hit its bottom line.<br />
The group will report 2015 results on February 26.</p>
<p>It means the bank will have remained in the red for eight years running, after RBS posted its seventh straight loss in 2014 with £3.5 billion in annual losses.</p>
<p>But RBS said it believed the extra PPI payment will draw a line under its financial toll for the scandal, covering mis-selling compensation up to the proposed deadline being set by regulators for claims, at the beginning of 2018.</p>
<p>Its pension payment comes after the group revised its accounting policy for the defined benefit scheme, which left it facing a funding gap.</p>
<p>The bank has agreed to make the lump sum payment of £4.2 billion into the main fund, which was closed to new members 10 years ago but still has around 220,000 members.<br />
The group remained tight-lipped on the timetable for settlement of the US mortgage legal action.</p>
<p>It is the last of the major banks to settle with US authorities over toxic mortgage-backed bonds sold in the pre-crisis years.</p>
<p>More than a dozen banks have already settled their cases.</p>
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