Clydesdale Bank's parent company has announced it is setting aside a further £403m to handle claims for mis-sold payment protection insurance (PPI).
CYBG, the new name for the company that also operates as Yorkshire Bank, says extra funds are necessary following a review of costs of existing PPI claims.
It has also found an unexpectedly high number of new claims being lodged.
These have been stimulated by the setting of a deadline for PPI repayments, in August 2019.
A publicity campaign to encourage applications has also received extensive media coverage.
The figure takes the total budget for claims on mis-sold Payment Protection Plans at Clydesdale and Yorkshire Banks to £2.2bn.
It has also set aside more than £300m for other mis-sold financial products.
The funds being set aside this month will be largely funded by the former parent company of Clydesdale and Yorkshire.
National Australia Bank committed to meet more than 90% of the legacy costs from mis-selling when it floated CYBG on the London and Sydney stock markets in February 2016.
CYBG has to allocate £39m of the new funds for PPI mis-selling.
It will set out its full-year results on 21 November.