Barclays has set aside another £600 million to pay compensation to customers for the mis-selling of payment protection insurance (PPI). The extra cash, announced as the bank reported a 10% fall in its profits over the last nine months, brings the bank’s total provision for PPI claims to £8.4 billion. The total bill for the industry is expected to hit £40 billion. The bank’s chief executive, Jes Staley, indicated that the bank was “open for business” after the Brexit vote. He will focus his attention on its UK and US operations, and has said that he will consider selling off or cutting back on activities in Africa, continental Europe and Asia. Staley said that the bank has gained market share in the US investment banking industry and has increased its slice of the overall investment banking fee pool.
Earlier this week, Lloyds Banking Group set aside a further £1 billion provision for PPI mis-selling claims, making its contribution to the total bill for the banking industry about £17 billion. The Bank said that it hoped that this would be its last major provision for the scandal, and that it had been made after the Financial Conduct Authority’s (FCA) decision to set a 2019 cut-off point for claims. Barclays also indicated that its extra provision was as a result of the deadline being set by the FCA, adding: “We will continue to review the adequacy of the provision levels in respect of the FCA’s proposals, which remain subject to consultation.” The City regulator surprised the industry by setting the deadline as June 2019, rather than spring 2018, in an attempt to draw a line under what has been one of the biggest banking scandals in history.