Barclays has set aside an additional £700m for compensation for missold payment protection insurance.
In its half year results today, the bank says: “An additional charge of £700m has been recognised to reflect an updated estimated cost of PPI redress, primarily relating to an increase in expected future volume of claims.
“As at 30 June, the provision of £2.1bn represents Barclays’ best estimate of expected PPI redress. However, it is possible the eventual outcome may differ from the current estimate.”
The bank reported a pre-tax profit of £2.3bn, but costs related to the sale of its Africa business meant it was pushed to a £1.2bn loss.
Barclays group chief executive Jes Staley says: “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.”