Troubled RBS bank hit by severe computer glitch

State-rescued Royal Bank of Scotland battled Monday to repair an already battered reputation as it struggled to fix a week-old computer glitch that has affected millions of customers.

Faced with a huge backlog of unprocessed transactions, RBS said "1,200 branches" across Britain would stay open longer than usual up until late on Friday.

Problems with the bank's payment processing software left customers at the bank and at RBS-owned lenders NatWest and Ulster Bank unable to pay bills, access accounts and receive wages.

"We're making progress in putting things right," RBS said in a statement issued on Monday, while customers vented their anger on social networking sites.

"We have arranged for our customers to be advanced cash in our branches when they were missing payments and had no available funds," the bank added.

RBS chief executive Stephen Hester meanwhile insisted that a corner had been turned in the bank's attempt to sort out the mess, adding that senior executives would face "proper accountability" over the fiasco.

"We're well on the road to recovery. Fingers crossed all the bugs have been got out but we feel a corner has been turned," Hester told Sky News television.

An RBS spokesman had already said that a "large majority" of the three lenders' combined 15 million personal banking customers had been affected by the IT meltdown.

In a separate statement on Monday, NatWest apologised for causing "an unacceptable level of inconvenience."

Ulster Bank, which serves clients in Northern Ireland, said on its website that about 80 branches would have extended opening hours.

"We recognise this is an unacceptable inconvenience and we want to reassure our customers that if they experience bank charges as a result of this issue they will be refunded. Once again we would like to unreservedly apologise," Ulster Bank added.

Hester had issued a public apology on Saturday and admitted that customers had been let down.

Despite the banks' moves, some customers were unforgiving.

"Goodbye NatWest, from a customer of 25 years' standing," read one comment posted Monday on Twitter.

Parent group RBS is 82-percent owned by the British government after a massive bailout in the wake of the global financial crisis.

But it is still struggling to repair itself and last month posted a first quarter net loss of £1.52 billion (1.87 billion euros, $2.46 billion), almost three times the amount posted a year earlier.

Amid public anger over a raft of poor results, Hester waived his latest annual bonus of shares worth £963,000, which had been due on top of his £1.2 million salary for his work in 2011.

RBS last week meanwhile said it planned to axe 618 jobs at its department offering financial advice to customers, on top of 35,000 posts axed by the group since the 2008 financial crisis.

"Unfortunately for RBS the damage is irreparable for the customers that they will lose as a result (of the glitch) and the problems will only feed anti-banking rhetoric further," said Simon Denham, head of Capital Spreads trading group.

Investec bank analyst Ian Gordon said the fiasco could cost RBS dearly.

"I would estimate that the cost could run into the tens of millions of pounds," he said. "If you ask about the reputation damage, that is harder," to estimate.

RBS shares were down 3.29 percent at 235.3 pence on London's benchmark FTSE 100 index, which showed a drop of 1.36 percent at 5,438.58 points in late deals.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Indonesia informs convicts of execution, Frenchman excluded
    Indonesia informs convicts of execution, Frenchman excluded

    Indonesia said Saturday it has officially notified eight foreign drug convicts that they will be executed, but a Frenchman was granted a temporary reprieve after Paris stepped up pressure on Jakarta. The eight -- from Australia, Brazil, Nigeria and the Philippines -- have been transported to the high-security prison island of Nusakambangan where they will face the firing squad along with an Indonesian prisoner, despite strident international criticism. "Today, just now, we just finished …

  • Double Celebration
    Double Celebration

    Ropali Corporation, one of the top multi-brand motorcycle dealers in the Philippines, now holds two Guinness World Records. In the span of four days, Ropali Corporation broke two records, namely: The Largest Parade of Motorcycles with Sidecars and The Largest Simultaneous Motorcycle Burnout. As such, it also became the first motorcycle dealer in the Philippines to become a two-time Guinness World Record holder. The record for The Largest Parade of Motorcycles with Sidecars was previously …

  • United States seeks access to Philippine bases as part of Asia pivot
    United States seeks access to Philippine bases as part of Asia pivot

    The United States has asked for access to Philippine military bases in eight locations to rotate troops, aircraft, and ships as Washington shifts its forces to Asia and as China expands its military presence in the South China Sea. U.S. Defense Secretary Ash Carter, in a speech in Arizona, has outlined Washington's next phase in its Asia "pivot", deploying its most sophisticated destroyers, bombers and fighters to the region. The Asia "pivot" has already seen U.S. Marines rotating through the …

  • China's island-building to loom large at SE Asia summit
    China's island-building to loom large at SE Asia summit

    China's creation of new island footholds in contested seas will hover over a Southeast Asian summit that has become an annual test of the region's nerve in standing up to its massive neighbour. The South China Sea hot potato drops this year into Malaysia's lap as the rotating chair of the 10 member Association of Southeast Asian Nations (ASEAN) and host of Monday's meeting. ASEAN states Vietnam, the Philippines, Malaysia and Brunei claim parts of the strategic South China Sea, but Beijing …

  • Philippines, China trade accusations over sea threats

    MANILA, Philippines (AP) — The Philippines accused China of aggressive maneuvers against its reconnaissance plane and fishermen in disputed seas where Beijing has stepped up construction of artificial islands, but China reiterated its claim on the strategic waterways. …

  • Indonesia orders execution of Mary Jane, 9 others
    Indonesia orders execution of Mary Jane, 9 others

    Indonesia has ordered preparations for the execution of 10 drug convicts, including Filipina Mary Jane Veloso, as the Philippine government filed yesterday a second appeal for judicial review of the case to save the maid from death by firing squad. The Attorney General’s Office (AGO) of Indonesia released an official letter dated April 23, instructing prosecutors to prepare for the execution of 10 convicts, the Jakarta Post reported yesterday. The execution would be conducted after the …

  • Noy to visit Canada, Japan
    Noy to visit Canada, Japan

    President Aquino will embark on a state visit to Canada in May and Japan in June to meet with his counterparts and promote Philippine interests. Deputy presidential spokesperson Abigail Valte said Aquino accepted the invitation from Canadian Governor General David Johnston to make a state visit to Canada from May 7 to 9. Tied to this trip is the President’s one-day working visit to the United States to meet with potential investors and with the local Filipino community in Chicago, Valte …

  • Business groups back K to 12 program
    Business groups back K to 12 program

    The government’s K to 12 program adding two more years to basic education received support from various business groups yesterday. However, they urged relevant government agencies to deal with issues regarding the implementation of Republic Act 10533, the Enhanced Basic Education Act or K-12 Law. In a statement, business groups led by the Philippine Business for Education (PBEd) said RA 10533 is a milestone piece of legislation that intends to bring the Philippines up to par with the rest of …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options