Barclays Ups PPI Mis-Sell Provision By £900m
Barclays bank has announced it is making a further £900m provision for mis-selling of payment protection insurance (PPI) to consumers.
The announcement comes as the lender released its latest half-year results, which showed a 7% drop in adjusted pre-tax profit to £3.35bn.
The firm, which has sought to overhaul its internal cultural ethos in the wake of the PPI and Libor-fixing scandals, also saw a drop in some divisional revenue.
Its investment bank saw total income decrease by 18% to £4.26bn, in the six months to the end of June.
Barclays has launched a major restructure of its high risk, high return investment bank as it seeks to improve its retail arm.
The banking giant said its statutory profit - a different measure to adjusted profit - was £2.5bn, up from £1.67bn in the same period last year.
Good returns were seen in its personal and corporate banking and its credit card units.
"We committed to simplify, focus and rebalance the group to deliver higher and more sustainable returns across the cycle, while structurally reducing our cost base and strengthening our capital position," chief executive Antony Jenkins said.
"We are making encouraging progress in executing this plan. Profits before tax in personal and corporate banking and Barclaycard were up 23% and 24% respectively."
In February, there was widespread shareholder concern about the contentious issue of bonuses at the bank.
The bonus figure for 2013 went up by 10% - despite both revenue and profit falling.
Of the £2.38bn "incentives" for staff, two-thirds went to investment banking staff.
The bank also revealed thousands of UK job cuts would occur this year - with 19,000 jobs set to be shed globally over the next two years.