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