Barclays confirmed that profits had dropped 21% in the first half of the year as the bank was forced to set aside another £400m to compensate mis-sold customers in the PPI scandal.
Profits for the half year to the end of June from £2.6bn last year to £2bn. This new provision brings mis-selling for Barclays to a total of £7.8bn. This meant that the Barclays profits were depressed by a £1.9bn loss.
Shares in Barclays rose by over 4% to 152.4p after the bank showed an improvement from its investment banking sector in the second quarter, despite disappointing results from the first part of the year.
There was also an improvement in the Barclays’ main business in the retail and investment banking sectors where profits in the first half increased by 19% to nearly £4bn. This includes over £600m made on selling shares in Visa Europe.
Britain’s largest banks and lenders have so far racked up a bill of nearly £30billion for the PPI scandal – the equivalent of almost £1,000 for every household in the UK.