4. Lloyds

Lloyds Banking Group's has put aside £5.3bn to compensate customers in a scandal that has hit national headlines and further dented public confidence in their sector. The bank was criticized for mis-selling Payment Protection Insurance to its customers. The policy was framed to financially support people in the event when they fall ill and are incapable to work, but the insurance was inappropriately sold to customers who would not be able to make a claim.

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5. Royal Bank of Scotland

Technical glitches turned out to be a costly affaire for the Royal Bank of Scotland (RBS) and its subsidiaries NatWest and Ulster Bank. In August, media reported that RBS paid a heavy compensation of £125m to its customers who were affected by the recent breakdown in its computer systems. For up to two weeks in June, the account holders of RBS and its subsidiaries banks were unable to withdraw from their accounts or see whether they had been credited with money.

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