Figures just released by Barclays show that they expect to pay another £900 million in PPI compensation.
The annual report for 2018 said: “The provision of £0.9bn represents Barclays Group’s best estimate of expected PPI redress reflecting the complaints deadline implemented by the Financial Conduct Authority (FCA) of 29 August 2019.”
Barclays has set aside £9.6 billion overall and with £900,000 still left in the pot at the end of 2018 it has decided no more money is needed. However, in common with other high street banks, it says it is keeping the level of provision under review in case the situation changes.
Its calculations are based on the estimated number of future successful claims, the average compensation paid per claim and the processing costs incurred.
It says: “These assumptions remain subjective, mainly due to the uncertainty associated with future claims levels, which include complaints driven by claims management company (CMC) activity and the FCA advertising campaign.”
Having already received 2.4 million complaints it expects another 290,000 before the deadline with an uphold rate of 91% in favour of the customer. The average payment per claim is expected to be £2,233.
Reporting a profit of £3.5 billion for 2018, the bank said it had set aside £150 million to cover ‘anticipated economic uncertainty’ in relation to Brexit.
Chief executive Jes Staley commented: “There is a lot of uncertainty out there. What is important for Barclays is we are a British bank and we are staying committed to the U.K.”