The release of Q1 figures followed an announcement that RBS had earmarked £856m as a ‘penalty fund’, to pay fines and judgments still pending; this figure includes £334m for its role in the foreign exchange rigging scandal, and an undisclosed sum for ongoing payment protection insurance mis-selling liabilities. The bank is still 80 per cent owned by the public.

The losses suggest that RBS – unlike fellow bailout recipient Lloyds, which is gradually returning to profitability, and being sold off in chunks – may not yet be a palatable prospect for private investors.

Lloyds has returned to profit and is gradually being sold off to the private sector, but the losses at RBS suggest taxpayers are a long way from recouping some of the £46bn bailout that saved the bank from collapse during the financial crisis. The release caused RBS shares to plunge by 3 per cent (to £3.38), losing £700m off their value in the process.

“This is going to be another tough year,” said RBS chief executive Ross McEwan. “There are still many conduct and litigation hurdles looming on the horizon. We look forward to the day we can focus entirely on the future rather than dealing with legacy issues.”