RBS boss “underestimated” bonus row

Mr Hester, chief executive of the 83 per cent state-owned bank, disclosed that he had considered resigning amid the political storm.

But he said he believed it was essential to defuse the “timebomb” of the bank’s balance sheet for the benefit of the taxpayer.

“In the end, I came to the conclusion that it would be indulgent for me to resign,” he told BBC Radio 4’s Today programme.

Mr Hester said that he is tasked with “defusing a timebomb” at RBS and the spotlight placed on the bank makes the “job more difficult”.