Barclays receives yet another compensation blow worth £600m bringing the total cost over £40bn in the Payment Protection Insurance scandal in which customers were mis-sold the product.

27 Oct 2016 – The Guardian

The extra provision, announced as the bank reported a 10% fall in nine-month profits, takes Barclays’ costs to £8.4bn.

Data compiled by the thinkthank New City Agenda shows that this top up for Barclays has pushed the total provisions incurred by the industry to £40.2bn. Lloyds Banking Group makes up £17bn of that total.

Barclays said its extra provision was caused by the cutoff point of June 2019 for claims, set by the Financial Conduct Authority. It added: “We will continue to review the adequacy of the provision levels in respect of the FCA’s proposals, which remain subject to consultation.”

In the midst of an overhaul being led by chief executive Jes Staley, the bank insisted it was “open for business” after the Brexit vote. But Staley admitted he was considering what changes it might need to make to its business as the UK made plans to leave the EU.

Jes Staley insisted Barclays was ‘open for business’. Photograph: Reuters

Staley said: “We are looking at our options. We will take incremental steps. We are engaged in active discussions with the British government. Our desire is to stay as fully invested in the UK as we can.”