UK banks 'setting aside another $1.5bn for PPI'

24 July 2012

British banks involved in the PPI mis-selling scandal are setting aside an additional £1 billion ($1.5 billion) to deal with claims made against them.

That is according to a report published by Sky News today (24 July), which has indicated that the country's four largest high street financiers will take their total provisions for this issue up to £8 billion.

HSBC, Lloyds Banking Group, the Royal Bank of Scotland (RBS) and Barclays will announce this plan formally along with the imminent publication of their half-year results.

Lloyds is scheduled to release its figures on Thursday and the news source has stated this will include a higher amount of PPI provision for the remainder of the year than the £375 million set aside in the first quarter.

"Assuming the new charges are disclosed by the banks, it would mean that Lloyds will have had to fork out at least £4 billion alone for its mis-selling activity," the report added.

By Claire Archer

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