Barclays Adds Over £1bn to Mis-selling Provision
Barclays confirmed that it will increase the funds put aside for mis-selling products to consumers and businesses by more than £1bn, taking the total to £3.4bn.
The figure is made up of an additional £600m to pay off consumers who were mis-sold payment protection insurance (PPI), while the amount set aside for redress in the sale of
interest rate hedges
is to be doubled to £850m.
The UK bank is also believed to have to set aside money for potential litigation relating to manipulation of the London Inter-bank Offered Rate (Libor) for which it was fined £290m last June.
The announcement of increased provision came ahead of an appearance before the UK Parliamentary Commission on Banking Standards (PCBS) by chief executive officer (CEO), Antony Jenkins and chairman Sir David Walker.
Barclays’ new CEO said last month that the will unveil a
new business strategy
on 12 February, which he promised would “excite” the workforce.