Barclays, HSBC and Lloyds Banking Group are expected to set aside an additional £4billion to compensate victims of payment protection insurance mis-selling, taking the industry bill to £35billion.

PPI is already the costliest scandal in financial services history and last week the compensation bill went past £31billion, after Royal Bank of Scotland announced it will make an additional £500million provision, while Santander added £450million to its redress fund. Barclays, HSBC and Lloyds will report their full-year results next month and analysts and investors are bracing themselves for the announcement of fresh PPI provisions.

Read the full Article