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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.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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