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Barclays hit by unexpected PPI compensation payments

Barclays bank reported £47m loss for the three quarters up to 30th September, as a result of compensation payouts for mis-sold payment protection.

The banks expectations for compensation payouts were exceeded, and around £2bn has now been sectioned off for PPI claims.

Statutory profit before tax was down 86% for the bank, and shares were down by approximately 3% on Wednesday morning.

The bank also announced that two new federal probes would be investigating third party relationships to ensure they comply with U.S regulations.

The Financial Services Authority is also looking into payments made by Barclays bank to Qatar investors after a multi billion pound bailout in 2007.

Chief Executive, Antony Jenkins, said: “While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned.

“I am proud of how our colleagues have continued to focus on delivering for our customers and clients, and am grateful for our customers’ and clients’ continued loyalty to Barclays.

“We look forward to closing out 2012 in a strong position, and to sharing more with you in February 2013 about how we intend to make Barclays the ‘Go-To’ bank for all of our stakeholders.”

UK profits before tax dropped by 4% in comparison with the same period in 2011 to £1,146m, and the bank announced a dividend of 1 pence to be paid in the first week of December.

This was posted in Bdaily's Members' News section by Miranda Dobson .