UK banking group Barclays has put aside a further one billion pounds to cover compensation for mis-sold products in the fourth quarter, the company said on Tuesday morning.
Ahead of the group's full-year results next week, Barclays has warned that it has increased its provision for redress relating to interest-rate hedging products wrongfully sold to small- and medium-sized enterprises by another £400m for the final quarter of 2012. This takes the cumulative provision to £850m.
Meanwhile, the lender also said that it is providing a further £600m for Payment Protection Insurance (PPI) claims, mainly as a result of a "higher-than-anticipated response rate to pro-active mailings in Q4". Cumulative provisions for PPI redress now stand at £2.6bn.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Based on claims experience to date and anticipated future volumes, the provision represents Barclays best estimate of expected future PPI redress payments and claims management costs. Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of the PPI provision," the firm said.
-
Shein shifts IPO focus to Hong KongThe development piles fresh pressure on London’s beleaguered stock market, which many had hoped would be boosted by Shein’s IPO
-
Scientists turn lead into gold – could it wreck the yellow metal's price?Medieval alchemists have been vindicated after scientists turned lead into gold, but the results aren’t going to crash the gold price any time soon
