Statement on Payment Protection Insurance
18 Oct 2012, 14:35 BST
Barclays has experienced higher than previously anticipated levels of Payment Protection Insurance (PPI) claim volumes since the end of the first half, and has therefore determined that it is appropriate to provide a further £700m as at 30 September 2012.
This is in addition to provisions recognised of £1bn in 2011 and £300m in the first quarter of 2012. Based on claims experience to date and anticipated future volumes, the resulting provision includes Barclays best estimate of expected costs of future PPI redress. Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision.
On 31 October 2012, Barclays will announce its third quarter Interim Management Statement. Barclays currently expects the Group adjusted profit before tax, which excludes the impact of own credit (expected to be a charge of £1.1bn) and the provision for PPI redress, for the three months ended 30 September 2012 to be broadly in line with current market consensus of £1.7bn.