Barclays takes £300m hit on PPI
Banking giant Barclays took an additional £300m (€366.5m) hit to cover payment protection insurance mis-selling claims today but unveiled a higher-than-expected rise in quarterly profits.
The bank has now set aside £1.3bn (€1.58bn) to deal with PPI compensation after a recent increase in the number of claims, which have eaten into the profits of its UK arm.
However, stripping out the cost of PPI and other one-off costs, the bank reported a 22% rise in pre-tax profits to £2.4bn (€2.93bn) – against City expectations of around £2bn (€2.44bn) – as the UK’s retail banking division and Barclaycard performed well.
Barclays chief executive Bob Diamond has been in the spotlight recently over his £17.7m (€21.6m) pay package for 2011, which is expected to come under increased scrutiny at the bank’s annual meeting tomorrow despite recent moves to quell a shareholder rebellion.
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