Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

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

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Brewin's Foster & Gutteridge: searching for the yield of dreams

Brewin's Foster & Gutteridge: searching for the yield of dreams

Guy Foster and Ben Gutteridge discuss the latest upbeat US payroll report and how it has increased the probability of a first hike in interest rates in June.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter