NatWest has said it will not pay £7.6 million in potential payments to former chief executive Dame Alison Rose after she left the company in July amid the fallout over the debanking row with Nigel Farage.
Ms Rose will still be entitled to £1.7million in salary, fixed share allowance and a pension allowance for the rest of the notice period under her contract.
The bank is understood to be trying to draw a line under the Nigel Farage debanking row.
Last month, the bank apologised to Mr Farage, acknowledging that it had been guilty of “serious failings” in the way it had treated him.
The decision to “debank” Mr Farage sparked a firestorm in Westminster and forced the City watchdog into an urgent review of the practice across Britain’s banking sector.