The UK arm of Santander said today that it had set aside more than half a billion pounds to cover the costs of mis-selling payment protection insurance to its customers.

The hit comes after the High Court decided that new rules on the mis-selling of PPI could be applied retrospectively and the British Bankers’ Association pulled an appeal against the decision.

Santander UK is the latest bank to reveal its PPI charge after Lloyds Banking Group made a provision of £3.2 billion, Royal Bank of Scotland set aside £850 million, Barclays £1 billion and HSBC earmarked 440 million US dollars (£270 million).