Barclay’s profits leap by 25% despite increasing PPI bill
Barclays has reported a 25% rise in statutory pre-tax profits in their interim statement published recently. However the bank also reported that it had set aside £600m for mis sold Payment Protection Insurance taking the total of its provision for PPI mis selling to a staggering £6bn.
Solicitor Paul Cahill reflects on this latest revelation.
“It’s results time for the banks again and once more the news is dominated by provisions for mis sold PPI. You would have thought with the recent departure of the Barclays Chief Executive Anthony Jenkins and the much publicised strategic review that mis sold Payment Protection Insurance wouldn’t have received much coverage but the sheer scale of the provisions has ensured that payment protection insurance has once againsecured its place in the story about Barclay’s results.
“When you consider that the bill for PPI mis selling for just one bank – Barclays and for just three months – April to June this year was an astounding £600m then I suppose it’s hardly surprising that it was included. However the £600m pales into insignificance when you look at the total PPI cost to date for Barclays which is a whopping £6bn.
“What might take some by surprise is that this isn’t the end of the PPI mis selling scandal. There are still countless people who’ve yet to reclaim mis sold PPI. That means the total bill could ultimately make the current bill seem quite modest!”
Content correct at time of publication