Banks' redress payments to customers embroiled in the interest rate swap mis-selling scandal surged to £158.6m in December, putting most banks on track to reach their projected review targets.
Figures released by the Financial Conduct Authority (FCA) showed that Barclays, Lloyds and the Royal Bank of Scotland all surpassed their set targets for determining redress for reviewed cases in December, while HSBC lagged behind its initial projection by one percentage point.
However, HSBC surpassed the FCA's set target of communicating with more than 50% of customers by the end of the year, having told 54% of their customers what the outcome of their review was.
Banks were ordered by the regulator to conduct reviews into how interest rate hedging products were sold to retail clients after it detected failings in sales conducted after 2001.
In total, 18,700 customers were asked to join the review last year, and 1,040 offers have been accepted, while 672 cases were ruled not eligible.
RBS had the most cases to tackle at more than 9,000, while Barclays and HSBC each reviewed just over 3,000 sales and Lloyds just short of 2,000.
The banks all vowed to provide a redress determination to all customers within 12 months of starting their reviews, with deadlines set for between April and June this year.
The FCA said 3,700 customers have yet to opt in, leading banks to send out final reminders to encourage them to participate.
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