Barclays might have to pay an additional amount of nearly £1.2bn in legal costs and fines to cover the cost of mis-selling of payment protection insurance and other "legacy" issues.

The British lender said it is working to resolve all the outstanding legal matters including an investigation into the bank’s so-called "dark pool" trading platform and other regulatory issues, as reported by The Telegraph.

It is believed that the bank may nearly pay £200m penalty to settle fraud allegations relating to its dark pool, and a further £700m to resolve an industry-wide investigation into manipulation of the $5.3tn a-day currency trading market.

In addition, the bank is likely to take a £300m charge during the second half of the year to recompense customers who were mis-sold products to help them hedge interest rates.

Earlier, the bank paid $450m in fines to the US and UK regulators to settle the London interbank offered rate (Libor) manipulation charges.

Last month, Barclays chief executive Antony Jenkins said:"Where there is a case to answer, we will take responsibility, accept the sanctions, learn the lessons and move on."