The bank has been accused of its employees having attempted to fix Libor rates and the fine of GBP280 million would fall within the range of provisions.

At the end of its third quarter of this year, UBS had set aside GBP600 million for litigation, regulatory and similar matters. UBS was the first bank globally to report suspected rate rigging, and has said it has received conditional immunity from some authorities for co-operating in their investigations.

It was in November 2012 that German tax investigators had raided hundreds of Barclays clients on suspicion of tax evasion and the Financial Services Authority, the UK watchdog, fined the bank GBP30 million following the jailing of its former trader Kweku Adoboli.

Adoboli had made losses of over GBP1.5 billion during three years of secretive off-the-book trades.

Barclays is the only bank to have been fined so far in the Libor scandal but last month Royal Bank of Scotland’s chief executive, Stephen Hester, said that his bank is preparing to enter talks with regulators to settle Libor-rigging claims. Authorities in Europe, Japan and the US are investigating more than a dozen banks including HSBC, Deutsche Bank and Credit Suisse.

In June 2012, Barclays was fined US$453 million for manipulating Libor benchmark interest rates, becoming the first bank to settle in the ongoing probe.