18th October 2012
Barclays has been forced to admit it will make a third quarter loss after revealing a shock £700m provision against larger than expected payment protection insurance compensation claims.
In a surprise statement to the market, Barclays yesterday said it had had to set aside a further £700m against PPI claims and would make a pre-tax loss for the three months to the end of September of £100m.
The new provision takes the total cost of the PPI scandal to Barclays to £2.1bn and means the combined cost to the British banking industry now exceeds £10bn, three times more than the original worst case City estimates.
Source: The Telegraph
Posted in PPI, Barclays, UK, Banking