Barclays profits slip as PPI provision bites
Barclays has seen a drop in profits during Q3 following the deadline for PPI claims as its chief executive warned of a global economic slowdown.
The bank said income had declined in the UK by 2% however this was partially offset by continued growth in mortgages and deposits.
Back in September Barclays had said it would have to set aside some £1.9bn to cover an influx of PPI claims before the August deadline.
The banks results reveal that this actually came in under expected costs at £1.4bn. This saw pre-tax profit slip to £246m as a result, down from £374m in the same period last year.
James Staley, CEO at Barclays, said: “We acknowledge that the outlook for next year is unquestionably more challenging now than it appeared a year ago, in particular given the uncertainty around the UK economy and the interest rate environment.”
The results came a day after Royal Bank of Scotland fell into the red after being hit by a further £900m provision for PPI claims.