(Sharecast News) - Barclays said it now expects to face a bill for payment protection insurance redress significantly greater than it had previously anticipated and provisioned for.
Following a spike in claims in the run-up to the complaints deadline, the lender said that a preliminary analysis had shown that in the third quarter it would have to book between £1.2bn and £1.6bn in additional provisions for PPI redress.
At the time of its half-year results, the lender had utilised £9.2bn out of a total of £9.6bn of PPI provisions that had already been booked, leaving it with a residual provision of £360.0m.
"The final outcome could be above or below the estimated range and will depend on a number of factors including the quality of recently submitted claims," Barclays said.
Given the new level of provisioning, Barclays anticipated that its core equity Tier 1 ration would be at its target level for the group of roughly 13.0% of assets at year-end 2019.
Barclays (BARC)2 May 2024 13:48
