The bank has not revealed its gross mortgage lending figures for Q1, but net mortgage lending was £1.4bn above target at £9.4bn for the year, it said.

State-backed bank RBS also said today it could not reliably estimate total liabilities for PPI sales, which could be ‘material’ but Deutschebank analysts estimate claims could exceed £1bn.

The announcement comes the day after Lloyds said it had made a provision of £3.2bn for PPI claims, double analysts’ estimates, leading to a fall in UK bank shares.

RBS saw its losses widen in Q1 to £528m, compared with losses of £248m in the same period last year.

This included a charge of £469m from a market valuation of credit insurance provided to RBS by taxpayers under the Asset Protection Scheme. It also revealed an impairment charge of £1.3bn in relation to Ulster Bank.

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However, operating profits were up almost £1bn to £1.05bn compared to Q4 2010. Its insurance arm, which RBS is committed to disposing, also returned to profit.

RBS reported it exceeded its business lending targets for the March 2010 to February 2011 Lending Commitments period, with gross new facilities totalling £56.9bn extended to UK businesses during the period, £6.9bn above target.

The results come after the Treasury Select Committee (TSC) said yesterday it has commissioned an independent review of the FSA’s report into the collapse of RBS. It wants to scrutinise why the regulator failed to spot problems at the bank.