 as the lender announced plans to set aside £700 million in compensation for the PPI misselling scandal, as well as reveal){kind=link}
Bad news for Barclays (LON:BARC) as the lender announced plans to set aside an extra £700 million in compensation for the PPI misselling scandal, as well as reveal they have made a loss for its African business.
The bank has seen a £1.2 billion loss for the first half of 2017, but chief executive Jes Staley is positive with the restructuring of the lender which is now complete.
“Our business is now radically simplified, the restructuring is complete, our capital ratio is within our end-state target range, and while we are also working to put conduct issues behind us, we can now focus on what matters most to our shareholders: improving group returns,” said Staley.
Barclays is also amid a whistleblowing investigation, to which Staley said: they are “cooperating fully” with the Financial Conduct Authority as well as the Prudential Regulation Authority.
“Barclays is also providing information to, and cooperating with, authorities in the United States with respect to these matters,” the bank said.
With the extra £700 million added to Barclays’s, it brings up their total bill up to £9.1 billion. This is compared to the lender Lloyds Banking group ( LON:LLOY), whose total increased on Thursday to £18.1 billion.
The pace of PPI is likely to keep increasing. The Financial Conduct Authority is going to run a campaign to encourage everyone who was mis-sold PPI to make claims before the deadline, which has been set to August 2019.
Despite this hit, the Lloyds chief has said they remain positive for the UK economy and the future of the lender, which “remains resilient”.
“Inflation is however now rising above disposable income given the recent depreciation in sterling and, while this may affect consumption going forward, the economy should benefit from rising exports and earnings from foreign assets,” he said.