Barclays sets aside further $1.1bn for PPI claims

19 October 2012

Barclays is to set aside a further £700 million ($1.1 billion) in order to deal with claims made against it for the mis-selling of payment protection insurance (PPI).

The major UK bank revealed yesterday afternoon (18 October) that it has "experienced higher than previously anticipated" levels of PPI claims in the second half of 2012, meaning it needs a greater budget for compensation awards.

This latest injection of cash into its PPI provisions means the company has now set aside a total of £2 billion to handle claims, after it kept back a total of £1 billion in 2011 and another £300 million in the first quarter of this year.

"Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision," the bank added in a statement.

The financier has been beset by problems this year and was hit with a $450 million fine for its role in the Libor manipulation scandal.

By Asim Shah

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