Barclays sets aside £600m for PPI amid bumper results

Barclays reported a forecast-beating rise in third quarter profits
Barclays reported a forecast-beating rise in third quarter profits
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Barclays has set aside an extra £600​m to meet compensation claims for mis-selling of payment protection insurance (PPI) in the third quarter.

The sum exceeds ​analysts' estimates ​of an extra​ £500​m ​for​ the three months to September ​30 ​and brings the total provision over the past two quarters to £1​bn, after £400m was put aside in the second quarter.

The banking industry's PPI bill already stands at more than £30​bn.

The Financial Conduct Authority (FCA) has put a June 2019 deadline on claims in an effort to draw a line under what has been one of the biggest banking scandals in history.

​In an update, ​Barclays reported a forecast-beating ​rise​ in third quarter profits to ​£​1.7​bn as it followed US peers in reporting a bumper quarter for its investment banking​ ​business.

​Barclays​'​ group pre​-​tax profits for the three months to the end of September, excluding notable items, ​rose from ​£​1.4​bn a year ago​ and was ​above the average ​analyst ​forecast of ​£​1.3​bn.

The performance was driven by improved investment banking results, with profits up 40 per​ ​cent overall ​following​ stronger returns from the trading division.

​​Chief ​e​xecutive Jes Staley said​: "The growing momentum in attaining our strategic goals means we can feel optimistic of our prospects of completing the restructuring of Barclays​.​" ​

Morgan Stanley and Goldman Sachs both saw profits for the third quarter rise by more than 50 per​ ​cent, largely from the surge in bond trading as investors fret over monetary policy around the world.

Barclays also benefited from earning the majority of its investment banking revenues in the U​S, since the dollar has appreciated in value against the pound in the aftermath of Britain's vote to leave the European Union.

​The bank said it ​i​s on track to close its non-core unit in 2017 and said costs ​a​re under control and on target​.