Barclays has set aside and additional £400m to compensate people mis-sold payment protection insurance (PPI), adding to the toll the scandal has had on the bank.
As reported by the
BBC, the financial institution has earmarked the amount to add to its compensations efforts. This new cash allotment has led to the scandal costing Barclays £7.8bn in total. The need for the money to be set aside is a blow to executives, who were hoping the PPI scandal had finally come to an end.
In addition, Barclays announced its profits had also fallen by 21% in the last 12 months. The losses were attributed to international arms the company already plans to sell off, in locations such as France, Spain, Africa and Italy. While the sales process will be expensive, chief executive Jes Staley believed it will cut costs by £1bn.
“Our strategy remains the right one, it is anchored on the belief that we want to be a large, diversified financial institution because we’re not going to escape the economic volatility of economic cycles, and that is particularly noteworthy after the Brexit vote,” said Staley. “We went into Brexit with a very strong capital position, extremely liquid and a very conservative, prudent approach to credit. Our goal... is for Barclays to be a centre of stability when there are uncertain times in the economy.”
In June, Barclays finalised the sale of its Italian insurance operations to CNP Assurances. While the total sum of the deal was not disclosed, the transaction involved €700 million in assets under management.
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