RBS may need to top-up litigation provisions

RBS might require additional provisions in future periods in respect of litigation claims, which in aggregate "could be material", the lender said at a Barclays conference in New York.

The statement was included in one of the slides prepared in advance of the group's presentation and published on the lender's website.

"This [$5.6bn] provision does not include or reflect potential penalties and compensatory damages that may be imposed by US DoJ, which may be substantial," the presentation also said.

One market source referenced the contents of the presentation as a possible contributing factor to the slide in the bank's share price on Monday.

"Seeking to materially address residual conduct and litigation overhang during the second half of 2016 and 2017," the lender said in the same presentation.

As of 1553 BST shares in RBS were losing 3.48% to 199.50p.