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Barclays increases mis-selling provisions

Barclays increases mis-selling provisions

Category: Banking

Updated: 05/02/2013
First Published: 05/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Barclays has increased the amount of money it has set aside to deal with mis-sold products to businesses and consumers by £1 billion.

The bank announced it will increase its provision for the mis-selling of payment protection insurance (PPI) to £2.6 billion, whilst the amount set aside to cover redress on the mis-sale of interest-rate hedges has been stretched to £850 million.

The UK's biggest banks, including Royal Bank of Scotland, HSBC and Lloyds Banking Group, have made provisions totalling at least £12 billion to cover compensating customers affected by the PPI mis-selling scandal.

Barclays, which is due to release its full year results on 12 February, has been embroiled in a number of scandals in recent months.

The bank's involvement in the fixing of inter-bank lending rates led to it incurring a record £290 million fine from UK and US regulators last June, which was closely followed by the resignation of its chief executive, chairman and chief operating officer.

What next?

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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