But it's not all bad news as it's also seen a 47 per cent rise in mortgage lending.
Meanwhile the Royal Bank of Scotland has posted a loss of more than 2-billion pounds in the first half of this year.
The British taxpayer-backed lender says the total takes into account a 1-point-3 billion pound bill for PPI compensation and other legal costs.
But the bank's boss insists it's making progress, and is “well positioned” for a potential economic slowdown.