U.K. Banks Seen Facing $2 Billion in Extra PPI Costs After Delay
- U.K. bank regulator wants ‘orderly conclusion’ to PPI scandal
- Deadline could be later than expected, cause more losses
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Three of the U.K.’s biggest banks face extra charges of about 1.5 billion pounds ($2 billion) after the Financial Conduct Authority said it will probably delay a deadline on payment protection insurance complaints by a year, according to Citigroup Inc.
Lloyds Banking Group Plc may have to set aside an additional 750 million pounds to cover the cost of compensating consumers who were mis-sold PPI through June 2019, analysts led by Andrew Coombs wrote in a note to clients on Tuesday. Royal Bank of Scotland Group Plc may require 500 million pounds while Barclays Plc could need 250 million pounds.