Royal Bank of Scotland said today its bad debt charge would increase but that it expected results to continue to meet market forecasts.
Shares in the bank were recently hit by concerns over its exposure to collapsed US utility group Enron.
Royal Bank said in a statement certain specific customer situations had contributed to its higher bad debt charge.
However, the bank said its overall credit quality remained strong and that it expected income growth for the second half to surpass that of the first half.