RBS to add £125m to PPI fund - reports

Royal Bank of Scotland is expected to announce a £125m increase to its fund for compensating customers who were mis-sold payment protection insurance (PPI).

Citing sources familiar with the matter, Reuters said the bank would reveal the increase in its first-quarter results, due out tomorrow.

The additional £125 comes on top of the £850m the bank set aside in 2011 to cover the cost of compensating policyholders who believed they had been mis-sold PPI.

Lloyds Banking Group revealed with its first quarter results on Tuesday that it had added a further £375m to its PPI compensation fund.