Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Banks' PPI mis-selling redress set to hit £25bn

Banks' PPI mis-selling redress set to hit £25bn

Banks are likely to be forced to pay £25 billion in redress for payment protection insurance mis-selling, nearly double the amount they have set aside, according to The Times.

It said calculations using the Financial Services Authority's (FSA) monthly PPI payout figures and historic selling data showed the final banks would dwarf the £13 billion currently set aside.

The jump comes after the FSA ordered banks to write to customers sold PPI to invite them to consider claims. It suggests big increases to bank provisions in their third quarter results last year to do account for the scale of the problem. In November Lloyds Banking Group increased its provision by £1 billion to £5.3 billionBarclays set aside a further £700 million, and Royal Bank of Scotland hiked its provision by £400 million to £1.7 billion. HSBC raised its provision for British 'customer redress programmes' - largely due to PPI selling - by $553 million to $2.1 billion.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter