LONDON (Alliance News) - Britain's largest high street banks will next week say that they are setting aside further provisions in relation to the payment protection insurance mis-selling scandal, Sky News reported on Tuesday, citing insiders who said that the new top-ups could reach close to GBP1.5 billion between them.
According to the report, Barclays PLC, Lloyds Banking Group PLC and Royal Bank of Scotland Group PLC will use their first-half results to disclose the new provisions. According to Sky News the new provisions "are understood to be being driven by an acceleration in the number of claims which relate to PPI policies sold before 2005."
Banking sources said that Barclays will account for most of the latest provisions, according to Sky News, though they did say that this was because the bank hasn't taken a provision since last July, unlike the others.
However, the report did say that the "final numbers are still being worked out with each lender's auditors."
http://news.sky.com/story/1305454/banks-face-1-5bn-hit-from-ppi-claims-deluge
Barclays, Lloyds and RBS declined to comment to Alliance News.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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