RBS revealed it spent about £1.8bn in redress costs for the third quarter of this year but maintained an operating pre-tax profit of £255m.
The majority of these costs related to the redress of payment protection insurance (PPI) which amounted to £1.1bn.
Some £68m of pay-outs were made in relation to interest rate hedging products.
The bank said the remaining redress costs of £623m predominately related to packaged back accounts and tracker mortgages.
However, this is a decrease of costs compared to the second quarter of 2016 when the bank spent more than £2bn on redress – most of which related to PPI.
Risk elements in lending (REIL) increased by £836m in the third quarter to £12.6bn as a total for the entire year.
The proportion of gross customer loans in REIL decreased from 4.5 percent for the third quarter of 2015 to 3.8 percent for the same period this year.
Restructuring costs were down year-on-year for the third quarter, from £847m in 2015 to £469m this year.
During the same period litigation and conduct costs reached £425m. This included settlement charges to resolve two outstanding lawsuits in the United States relating to residential mortgage backed securities.