He stated that financial institutions are unlikely to restrain themselves and went on to admit that RBS is paying "a lot of people who aren't worth it", reports the Guardian.
Sir Philip said that while the problem of bonus payments was something of a conundrum for both banks and the government, the only way to "decisively solve" the issue is by bringing in new rules.
According to a recent estimate from the Centre for Economics and Business Research (CEBR), financial institutions based in the UK are set to pay out around Â£7 billion ($11 billion) in bonuses this year.
However, about Â£4.1 billion of this amount should find its way to the taxman, the report's co-author Benjamin Williamson told Bloomberg.
"The public coffers stand to gain considerably more from City bonuses than City workers themselves," he said.
By Tony Aynsley