(ROUGH CUT - no reporter narration)
Hester said the bank still had a "mess to clear up".
Earlier RBS chairman Philip Hampton defended bonuses due to be paid to Hester despite the British bank being punished for rigging interest rates.
While RBS, 82-percent owned by the taxpayer, has faced criticism over a deferred bonus of 780,000 pounds ($1.2 million) Hester is set to receive in March, Hampton told lawmakers that Hester's pay was modest by the industry's standards.
Hester receives a basic salary of 1.2 million pounds. While he chose to give up his bonus last year after a computer systems meltdown affected millions of customers, he was set to receive the share-based payment deferred from three years ago.
Some lawmakers have said Hester should not accept the payment after RBS was fined $612 million by British and U.S. authorities last week for its role in a global interest rate-rigging scandal.
RBS "mess" stills needs clearing up says CEO (2:17)
Feb. 11 - Royal Bank of Scotland Chief Executive Stephen Hester gives evidence to a UK parliamentary banking committee. Rough Cut (no reporter narration). ( Transcript )