Aside from Lloyds who Standard & Poor’s believe to add £1 billion more for mis sold PPI, Barclays is in hot water. Its misconduct fine total is equivalent to 26% in the first quarter alone.
Barclays is expected to pay out £2 billion more for conduct and litigation costs. It is expected to pay more for mis selling payment protection insurance.
The banks’ staff were also involved in the rigging of a £3.5tn a day forex scandal. It is being fined for £800 for currency market manipulation and £150 million more for payment protection insurance.
Barclays Chief Executive Anthony Jenkins is focused on a 9 per cent increase in underlying profits.
“Resolving legacy conduct issues is also an important part of our plan to transform Barclays. We are working hard to expedite their settlement and have taken further provisions of £800m this quarter, primarily relating to foreign exchange,” said Jenkins.
At most, Barclays is now holding a £2.5 billion of provisions for legal, compliance and regulatory matters alone. The £2 billion is another provision for the foreign exchange markets.
To add, Barclays had also lost much of its business in the first quarter after a £118m loss when it sold its Spanish market.