Barclays Plc is putting aside an estimated 1.6 billion pounds ($2 billion) more after a rush in last-minute payment protection insurance claims, threatening the lender’s promise to return more money to shareholders.
The bank said a “significantly higher volume of PPI-related claims” ahead of the Aug. 29 regulatory deadline led to the provision of between 1.2 billion pounds and 1.6 billion pounds. The lender is due to take the charge in the third quarter, according to a statement after the London market closed Monday. It’s the second British bank to take such a charge today after Lloyds Banking Group Plc earmarked as much as 1.8 billion pounds.