Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a656015

Barclays adds £1bn to PPI and rate hedged mis-selling bill

by Dylan Lobo on Feb 05, 2013 at 07:46

Barclays adds £1bn to PPI and rate hedged mis-selling bill

Barclays has set aside another £600 million to cover the mis-selling of payment protection insurance (PPI) and a further £400 million to cover interest rate hedged products (IRHP).

The bank, led by chief executive Antony Jenkins (pictured), told the stockmarket it was forced to increase the PPI provision as a result of a 'higher than anticipated response rate to pro-active mailings in Q4'. As a consequence the total PPI  provision has increased to £2.6 billion.

There is no guarantee the increased figure will cover the final PPI redress bill. 'Based on claims experience to date and anticipated future volumes, the provision represents Barclays best estimate of expected future PPI redress payments and claims management costs,' the bank said.  

'Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of the PPI provision.'

At the same time Barclays increased its IRHP provision following an FSA report into selling practices toward small and medium size enterprises. Overall Barclays has now set aside £850 million to cover IRHP redress.

Shares in Barclays slipped 1.1p, or 0.4%, to 290.4p in early trading as the market absorbed the news.  

The news comes a day after Barclays confirmed finance director Chris Lucas and legal counsel Mark Harding were standing down. Lucas is one of four current and former Barclays executives who are being investigated on the bank's relationship with the Qatar investment authority.

In a separate announcement posted on the stock exchange this morning. Barclays said it had appointed Diane de Saint Victor a non executive director to help restore the bank's image.

de Saint Victor serves as the general counsel and company secretary Swiss-based and automation technologies firm ABB. Prior to this she was held a similar post and European aerospace and defence company EADS.

Commenting on her appointment, Barclays chairman Sir David Walker said: 'Her [de Saint Victor's] background in legal and regulatory matters and in leading cultural change at ABB will bring a valuable perspective to the board as we implement the "Transform" programme and embed Barclays new purpose and values.'

1 comment so far. Why not have your say?

Rebus Fortissimus

Feb 05, 2013 at 08:42

The Age of Scrutiny is definitely upon us. I wonder whether the scrutineers are up for it?

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the shares

  • Barclays PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet