Barclays makes extra £700m PPI provision

Barclays has put aside an extra £700m to compensate customers for the mis-selling of payment protection insurance, bringing total provisions to £2bn.

The bank said it has experienced "higher than previously anticipated levels of payment protection insurance claim volumes" since the end of the first half of 2012. Having previously set aside £1bn in 2011 and £300m in the first quarter of 2012, Barclays said it would continue to monitor actual claims volumes and the assumptions underlying its provisions. The bank's shares, which had been in the black prior to the announcement, subsequently reversed gains to stand down 2.6% at 238p. Barclays added it expects adjusted pre-tax profit for the three months to 30 September to be in line ...