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.

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