RBS has reached an out-of-court settlement with a group of shareholders who alleged they were misled by the bank in the run-up to its £12 billion rights issue in 2008.

The banking group said that, further to the settlement reached with four shareholder groups in December 2016, it has now concluded a full and final settlement, without any admission of liability, with shareholders representing 40 per cent by value of the remaining claimant group.

As a result of these settlements, RBS has now reached a resolution with shareholders representing 87 per cent of the original claims by value in the litigation.

As part of the latest settlement, RBS has made available an additional sum in respect of the legal costs incurred by the claimants since December 2016, subject to agreement and claim validation.

Ross McEwan, CEO of RBS, said: “We have been very clear that putting our legacy issues behind us is a priority so that we can focus on building the best bank for our customers, shareholders and employees.

“We are pleased to have reached this agreement. We will continue to explore the possibility of settlement with the remaining claimants but if we cannot settle on agreeable terms we will defend the claims at trial.”