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10th September 2019
Barclays Bank to increase its provision for PPI redress in its Q3 2019 Results by between £1.2bn and £1.6bn after late surge to beat deadline
As indicated in the Barclays Interim Results Announcement for the six months, Barclays had recognised cumulative provisions of £9.6bn in relation to PPI redress. Utilisation of the cumulative provisions to 30 June 2019 was £9.2bn, leaving a residual provision of £360m.
In line with wider industry experience, Barclays has received a significantly higher than expected
volume of PPI-related claims, enquiries and information requests during August, with a further spike in the final days leading up to the complaints deadline.
The processing of PPI-related claims, enquiries and information requests is ongoing. However, Barclays expects to increase its provision for PPI redress in its Q3 2019 Results by between £1.2bn and £1.6bn, which takes into account investigations and queries by the Official Receiver.
This provisional cost impact is preliminary and unaudited. The final outcome could be above or below the estimated
range and will depend on a number of factors including the quality of recently submitted claims. At this level of provisioning, Barclays expects to be at the Group’s target CET1 ratio of c.13% at yearend.