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Jenkins hints Barclays pay and bonuses may be hit by PPI claims

by Sarah Miloudi on Jul 30, 2013 at 13:17

Jenkins hints Barclays pay and bonuses may be hit by PPI claims

Antony Jenkins has hinted continued payment protection insurance (PPI) and rate swap mis-selling claims could hit employees' bonuses.

Speaking during a media briefing, Jenkins (pictured) said: 'The remco (remuneration committee) will definitely want to see that reflected in the pools.'

It follows the bank clawing back £450 million from its bonus pool in February on the back of a stinging fine linked to Libor manipulation.

In its H1 results, Barclays revealed a PPI provision of £1.3 billion had been set aside, in addition to a £650 million provision for interest rate swap mis-selling and a £22 million client remediation provision linked to assets in its wealth division that were invested into AIG's Enhanced Variable Rate fund.

The bank also announced a rights issue valued in excess of £5 billion in an attempt to plug its £12.8 billion capital hole, and an adjusted profit before tax of £3.5 billion, some 17% lower than the figure posted for the same stretch in 2012.

‘After careful consideration of the options to meet the Prudential Regulation Authority (PRA) request for a 3% leverage ratio by June 2014, the board has decided on a set of actions, including the rights issue, to meet this target,’ investors were told.

Barclays said that as a result of the capital raising it would be in an even stronger position and could increase its dividend payout ratio ahead of its original Transform target.

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