Barclays has announced that it is to add an additional £600 million pounds to its PPI claims provision. This brings the total amount of money it has set aside to compensate people who have mis-sold payment protection insurance products to a staggering £8.4 billion.
One reason given for the extra money being added to its bill was the expected deadline for people to make PPI claims which are expected to be announced as being June 2019. Earlier this week, Lloyds also announced that it was to add more than £1 billion to it’s PPI bill.
In total, the PPI mis-selling scandal has cost UK banks nearly £30 billion.
Barclays Profits Hit By PPI Compensation Cost
Sky News also reported that:
Barclays’ statutory profit before tax was down 34% to £837m compared to the previous quarter.
The bank reported a fall in net operating profit for the period, down to £4.7bn from £5bn for the same time last year.
Chief executive Jes Staley remains optimistic about the prospects of restructuring operations at the bank.
This includes selling down and disposing of its hinterland businesses as quickly as possible in order to focus on US and UK operations.
“Our core businesses are performing well, non-core rundown is approaching the final lap toward closure, we are on top of costs, and our capital position is resilient with strong reasons for confidence in meeting our end state target,” Mr Staley said.
Barclays Sells Off Foreign Operations
Earlier in October, Barclays also announced that it was to sell its Egyptian banking division to Attijariwafa Bank. This news came in addition to the announcement from the bank that it was offloading a significant share of it’s holding in Barclays Africa and it was to sell completely it’s stake in it’s Barclaycard Credit Card operations in Spain and Portugal.