UK banks to set aside a further £1bn for PPI compensation

22nd Jul 2014 12:29

The UK's biggest banks will next week announce that they have set aside a further £1bn to meet payment protection insurance (PPI) mis-selling related compensation claims, reports have claimed. According to Sky News, Royal Bank of Scotland, Lloyds Banking Group and Barclays will reveal in their half-year statements that the combined bill amongst the four big lenders, which also includes HSBC, have now surpassed £20bn. It added that the increase in the amount set aside could be as much as £1.5bn. Around 5,000 new PPI-related complaints are filed each week, according to the Financial Ombudsman. Since the scandal broke, Lloyds has set aside the most for compensation at £9.8bn and, according to sources, will next week see its bill surpass the £10bn mark. Barclays, RBC and HSBC have so far allotted £3.95bn, £3.1bn and £2.1bn, respectively. NR