Banks 'set to take mis-selling hit'
Jul 24 2012
Britain's top four banks are reportedly set to take another £1 billion hit for mis-selling payment protection insurance - bringing the industry total to nearly £8 billion.
Lloyds Banking Group, Barclays, HSBC and Royal Bank of Scotland will all disclose additional charges for the period between April and June in their half-year results.
Lloyds and HSBC, which report on Thursday and Monday respectively, will say that they set aside more than their PPI provisions for the first quarter of £375 million and £300 million, Sky News said.
RBS is expected to confirm that it is making a further allocation similar to its £125 million first-quarter charge when it reports on August 3, while only Barclays is expected to allocate a smaller sum than its earlier £300 million provision on Friday.
The latest figures will underline the serious impact the mis-selling scandal has had on Britain's biggest banks and comes amid calls for an overhaul of the industry's culture and business practices following the rate-rigging scandal.
Britain's top lenders have also been accused of mis-selling complex interest rate hedging products - known as swaps - and have agreed to pay compensation.
Taxpayer-backed Lloyds will have paid out at least £4 billion alone for its mis-selling activity and will face questions over its involvement in the Libor-fixing scandal when it reports on Thursday.
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