RBS faces £175 million bill for IT meltdown

News by Tom Espiner

RBS has said it could cost up to £175 million for it to redress the effects of an IT failure that hit balance updates at RBS, NatWest and Ulster Bank this summer.

RBS has said it could cost up to £175 million for it to redress the effects of an IT failure that hit balance updates at RBS, NatWest and Ulster Bank this summer.

The £175 million charge, detailed in RBS' Q3 results, has been set aside to include compensation for the incident.

RBS has revised the figure up by £50 million from a Q2 estimate due to the length of time Ulster Bank customers suffered problems, RBS said on Friday.

In June a maintenance error traced to one of the banking group's Edinburgh data centres caused a batch-processing glitch.

Customer balances could not be updated, creating a backlog of work at the banking group. The huge backlog itself then added to the confusion.

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