Barclays shares rise as it increases PPI provisions

<p>Shares in Barclays are up after the bank announced it is increasing its mis-selling provisions.</p>

Shares in Barclays have climbed on the London Stock Exchange today (February 5th), after the bank announced that it is increasing its provisions to cover two mis-selling scandals by a generous £1 billion.

This is in relation to the mis-selling of interest rate hedging products sold to small firms and payment protection insurance (PPI).

Following a review, the bank said total provisions for the scandal involving interest rate swaps are now £850 million and £2.6 billion for PPI.

Led by chief executive Antony Jenkins, the bank told the stock market it was forced to up PPI provision as a result of the "higher than anticipated response rate to pro-active mailings in the fourth quarter".

This announcement comes a day after the bank announced that finance director Chris Lucas and legal counsel Mark Harding are stepping down from their roles at Barclays.

At 12:40 GMT, shares in Barclays rose by 1.3 per cent to 295.50p per unit.

Learn all about CFD trading strategies and the FTSE 100 at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.