LONDON – Scandal-tarred Barclays has put aside another 1.05 billion pounds ($1.65 billion) to cover the costs of scandals over mis-sold financial products.
The bank said it was increasing its provisions by 600 million pounds to cover mis-sold payment protection insurance, in which consumers were signed up for inappropriate insurance products. That takes the total devoted to payments and penalties linked to the scandal to 2.6 billion pounds.
Barclays said it was putting another 400 million pounds aside to cover mis-sold interest rate swaps to small businesses — a development which follows the announcement of an investigation into the practice by U.K. authorities.
Barclays has struggled to contain the fallout from various scandals over financial malfeasance; last week the bank's CEO said he was giving up his 2012 bonus.