RBS moves closer to settling all compensation claims over 2008 rights issue

Royal Bank of Scotland (RBS) has moved one step closer to reaching a settlement with all five shareholder groups that brought compensation claims against the lender in connection with its 2008 rights issue.

The Edinburgh-based bank says that it has reached a full and final settlement'' with a further 9% of total claimants, which represent part of the fifth and final shareholder group that has yet to resolve the dispute.

Those claimants are estimated to have received around #80 million of the #800 million pot that was put aside by the bank to cover the claims.

However, the bank stressed it made the payments without any admission of liability''.

Having settled this further portion of the rights issue claims, RBS said it had now reached a resolution'' with shareholders representing 87% of the claims by value in the litigation, leaving 13% of claims unresolved.

RBS has put aside an extra £10 million in provisions in light of the legal costs that claimants have faced since December.

However, the extra cost has already been taken into account and is not expected to weigh on first quarter results, set to be released on Friday.

RBS reached settlements with four of the shareholder groups in December 2016.