Britain's biggest banks have collectively racked up a £39bn bill as a result of financial scandals over just three years, a report has found.
A study by auditors KPMG covered financial results from Royal Bank of Scotland (RBS), Lloyds, Barclays, HSBC and Standard Chartered from 2011 to 2014.
It found that more than 60% of their total profits were wiped out by customer remediation, conduct failings and fines over the period, with costs totaling £38.7bn.
Conduct costs last year stood at £9.9bn, just 8% down on 2013, with almost half of the cash relating to the continuing cost of Payment Protection Insurance (PPI) and interest rate hedging mis-selling.
However, the report showed the banks were "in a healthier shape and returning to profitability" in 2014.
Their combined pre-tax profits reached £20.6bn, up £7.9bn or 62%.
The boost in profits was against a backdrop of total income falling by 12% to £127.2bn, as banks focused on less riskier activities in the wake of the financial crisis.
It meant, the study said, that shareholders were still getting a low return on equity.
Head of financial services at KPMG, Bill Michael, said: "Banks are undergoing a once-in-a-lifetime change, as they face evolving regulation, technology and society's expectations.
"At the same time, competition is increasing as new challenger banks and peer-to-peer platforms offer customers new ways to borrow and deposit and technology-led services such as PayPal and e-wallets change the way money is transferred and goods and services paid for.
"Domestically focused banking arms are focused on restructuring their business. Those with active investment banking arms face significant challenges around ring-fencing their retail and investment banking activities, which will become mandatory in 2019.
"The UK as a financial centre has largely been built on non-retail banking. If further regulation creates too many strictures on non-retail banking, the industry risks losing its global relevance."
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