Banks hit by further PPI payouts

This week, Lloyds and Barclays are expected to set aside hundreds of millions of pounds in additional reserves to compensate for mis-selling payment protection insurance (PPI), according to the Mail on Sunday.

Lloyds Banking Group is expected to ring-fence a further £250m, while Barclays is set to take a fresh hit of £200m.

In total, the UK’s big four banks – Lloyds, Barclays, HSBC and RBS – have so far had to set aside £13.2bn to repay customers mis-sold PPI policies.

Figures from the Financial Conduct Authority show that PPI payouts have been on the rise. Banks paid out more than £420m in compensation in both April and May, up from £375m in March and £409m in February.