According to reports, Barclays bank which is one of the biggest financial institutions in the UK and one of the banks responsible for the widespread mis-selling of payment protection insurance in the UK – has announced that the number of ppi claims that the banks received from customers rose sixteen percent in 2016.
The news was released in the bank’s annual report. More information gleaned from the statement also showed that Barclays profits before corporation tax rose three-times from £1.1 billion to £3.2 billion.
Barclays Still Having To Deal With PPI
In 2016, Barclays decided to add nearly £1 billion to it’s PPI provision stockpile, saying that it expected to see more people claiming ppi in the coming years. These additional funds have seen Barclays total stockpile of cash for ppi claims rise to over £8.4 billion.
The BBC website reported on more news coming from Barclays’ annual report.
Chief executive Jes Staley told the BBC the bank was “committed to the UK” post-Brexit, even if Britain leaves the single market.
Barclays has been selling off parts of the business which it deems “non-core”. In its annual results, the bank said it would bring forward the closure of the unit dealing with this by six months, and it will now shut on 30 June.
“We are now just months away from completing the restructuring of Barclays, and I am more optimistic than ever for our prospects in 2017, and beyond,” Mr Staley said.
Investec analyst Ian Gordon said that Barclays had benefitted from the sharp depreciation of the pound against the dollar following the Brexit vote, and that its investment bank revenues had also helped its performance.
Investment bank revenues of £2.5bn were up 21% compared with the year earlier, after a strong performance in the second half of 2016.
The bank also had lower litigation and misconduct charges in 2016, falling to £1.3bn from £4.4bn the previous year.