The average cost of claims over the past quarter has not declined as expected
RBS has set aside £465m to cover the cost of mis-selling payment protection insurance.
The bank said that the average cost of claims it dealt with in Q4 2013 has continued at previous rates of £225m per quarter rather than declining as expected. The claims are now expected to continue for a longer period.
This move follows a decision by the board late yesterday to set aside more than £3bn to cover various claims and conduct-related matters.
The expected payouts include £1.9bn for mortgage-backed financial products in America and £500m for the mis-selling of interest rate swaps.