UK Banks Still To Pay £2 Billion More For Payment Protection Insurance

July 28, 2015
by admin in PPI News

Barclays, Lloyds and RBS still have to set aside £1.9 collectively to compensate the victims of their payment protection insurance selling, cover fines and legal costs. The additional fees are to be announced after each banks report their half-year results.

Barclays is expected to announce that it had fallen by 6.4 per cent to £3.1 billion on its pre-tax profits due to weak performance from its investment bank. It also received a fine of £1.8 billion by the United States and United Kingdom for manipulating the currency market.

RBS would also pay a £64 million loss for the first half of 2015. Compared to a £2.7 billion profit for the same period last year, RBS is losing revenue due to weak investment at banking revenues and rising legal costs.

RBS is expected to set aside more than £375 million to increase its compensation £1 billion. Analysts predict that RBS may have to cover additional legal expenses in the United States as it fights against toxic mis sold bonds sold to investors.

In total, the PPI bill to date is at £26 billion.