Barclays has made a further £300m provision for PPI redress after experiencing an increase in claim volumes.
The bank initially made £1bn available to cover the potential cost of PPI-related compensation in May 2011.
According to a report in the Financial Times, Royal Bank of Scotland is also expected to increase its PPI provision when it announces its results next week.
The bank’s first quarter statement shows that between January 1 to March 31 this year, the group made a pre-tax profit of £2.4bn, up 20 per cent on the £2bn made in the first three months of last year. Its UK retail arm made a pre-tax profit of £334m in the first three months of 2012, up 15.9 per cent on the £288m reported last year.
Gross mortgage lending totalled £5.1bn in the first quarter, exactly the same as the same period in 2011. Lending to businesses totalled £5bn, compared to £4.5bn in the first quarter of last year.
The group has a core tier 1 ratio of 10.9 per cent as at March 31, a slight decrease from 11 per cent a year earlier.
During the first quarter the group says it has reduced its sovereign exposures to Spain, Italy, Portugal, Ireland and Greece by 16 per cent to £6bn. Spanish and Portuguese sovereign exposures stand at £2.2bn and £600m, respectively, while Italian exposure totals £3bn and Irish exposure totals £5.1bn. the bank says it has “minimal” exposure to Greece.