The cost of the Payment Protection Insurance (PPI) scandal has escalated again for Barclays as they have reported another £900 million provision to cover the costs of compensating customers who were mis-sold the insurance product.
The additional provision takes Barclays’ total bill for claims related to PPI to £4.8bn. Consumer group Which? Has estimated that the total bill for the banking industry as a whole has already topped £20bn.
The scale of the PPI provisions for Barclays came as the bank reported a 7% fall in profits to £33bn in the first half of this year, as well as a near halving in the profits of its once dominant investment bank.
However, there was some good news for Barclays, shares rose 4.8% to 229p in early trading in the first half of this year, having fallen 25% in the 12 months previous.
Barclays have said that the US Department of Justice (DoJ) have now extended a so- called non-prosecution agreement struck as part of a settlement over the Libor rate-rigging scandal. The move gives the DoJ until June 2015 to look into whether any of Barclays’ activities in the foreign exchange market “constituted the commission of a ‘United States crime’”.
Ian Gordon, analyst at Investec, said the key risks for Barclays included investment banking trading conditions, geopolitical developments and “increasingly intrusive and discriminatory regulatory behaviour”.
If you feel that you may have been mis-sold PPI from Barclays or any other financial lender, you should consider making a claim for compensation. You can do this independently, or alternatively through the help of a professional claims company such as Claims Advisory Group on 0800 088 4668.