Tuesday , September 17 2019

Barclays keeps $2b in insurance costs

Bloomberg

Barclays Plc is putting aside an estimated 1.6 billion pounds ($2 billion) more after a rush in last-minute payment protection insurance claims, threatening t
he lender’s promise to
return more money to shareholders.
The bank said a “significantly higher volume of PPI-related claims” ahead of the regulatory deadline led to the provision of between 1.2 billion pounds and 1.6 billion pounds. The lender is due to take the charge in the third quarter, according to a statement after the London market closed. It’s the
second British bank to take such a charge today after Lloyds Banking Group Plc earmarked as much as
1.8 billion pounds.
The fresh provision by the London-based lender takes the total bill for its part in the UK’s most expensive financial scandal to 11.2 billion pounds, the second highest of any lender, but still only about half of the cost to Lloyds.
A rush of claims ahead of the deadline has already led CYBG Plc and Royal Bank
of Scotland Group Plc to
add to their costs for PPI mis-selling.
The total cost of these provisions to the British banking industry now stands at 53.3 billion pounds.

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