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Barclays sets aside extra £600m for PPI claims in Q3

Barclays. Credit: PA Wire

Barclays has set aside an extra £600 million to meet compensations claims for the mis-selling of payment protection insurance (PPI) in the third quarter.

The sum brings the total provision over the past two quarters alone to £1 billion, after £400 million was set aside in the second quarter.

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

Chief executive Jes Staley said the bank is still focused on selling down and disposing its hinterland businesses to concentrate on UK and US operations.

"The growing momentum in attaining our strategic goals means we can feel optimistic of our prospects of completing the restructuring," he added.

On Wednesday, Lloyds Banking Group announced that it set aside a further £1 billion to fund compensation claims for the mis-selling of PPI.

The partly state-owned lender said it has also accounted for a further £150 million to meet other conduct issues, including £100 million relating to packaged bank accounts.

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Barclays pre-tax profits fall 25% to £793 million

Barclays reported a 25% fall in first quarter pre-tax profits Credit: PA

Barclays has reported a 25% fall in first quarter pre-tax profits to £793 million, down from £1.1 billion a year earlier.

The banking giant has been hit by tough trading in its investment banking arm.

Barclays also announced talks with AnaCap Financial Partners to sell its 74-branch business in France as boss Jess Staley continues to overhaul the lender.

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Barclays to cut investment banking operations: memo

Barclays is closing investment banking units as part of a review of global operations Credit: PA

Barclays is closing investment banking units in Australia and Russia, as well as in Asian countries such as Indonesia and Thailand, as part of some of the deepest cuts by any bank in recent times.

According to an internal memo sent to staff today, the London-based lender is also cutting its onshore markets coverage in Brazil and cash equities sales and execution businesses in Central Europe, the Middle East and North Africa.

The changes are part of a review of global operations.

The memo also showed that Barclays is exploring exiting its precious metals business globally.

A Barclays spokesman in Hong Kong declined to comment.

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