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Clydesdale Bank has recently announced that it has set aside a further £450m for mis-sold payment protection insurance.

It will take the total cost of this saga of mis-selling to £2.1bn.

Most of the money is coming from the National Australia Bank, former owner of the bank. They announced in recent months that the bank has made a half-year loss.

However, this was mainly the £2.1bn cost associated with spinning off its British subsidiary.

The bank was forced by regulators to commit a further £1.7bn to pay the continual costs of mis-selling after Clydesdale became independent.

The bank was floated on the London and Australian stock in the early stages of the year under the name CYBG.

Of the nearly £2bn that was committed by the National Australia Bank, only around £700m remains to be allocated.

Under the terms of this agreement, CYBG will pay over £44m of the new £450m of this provision.

Having set aside £2.1bn set aside for compensation so far, only around £300m has been paid out.

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