Clydesdale Bank’s parent company, Clydesdale Yorkshire Banking Group (CYBG), has announced it is setting aside an extra £403m (including Administration costs) for mis-sold Payment Protection Insurance (PPI) claims. The Financial Conduct Authority (FCA) has recently launched a £42m PPI TV advertisement campaign to raise awareness of the mis-selling of PPI and the reclaim deadline. This has resulted in an increase in PPI claims being made, meaning banks are having to set aside even more money.
The additional £403m takes Clydesdale & Yorkshire Bank’s total budget for claims up to £2.2bn (including Administration costs). The funds being set aside this month will be largely funded by CYBG. However, the National Australia Bank (NAB) have agreed to meet more than 90% of the legal costs from mis–selling, when it floated CYBG on the London and Sydney stock markets in February 2016. Of the £403m, CYBG will fund £39m with the remainder being met by the NAB. It takes the bank’s remaining PPI pot to £671m (including Administration costs).
CYBG’s statement said:
“Based on our updated assumptions, the utilised cover is sufficient to cover the costs of dealing with legacy conduct matters.”
Further details will be provided when CYBG publish their full year results on 21 November 2017.
www.bbc.co.uk: Clydesdale Bank sets aside extra £403m for PPI claims – 02/11/2017
www.telegraph.co.uk: Clydesdale and Yorkshire bank set aside extra £403m for PPI as claims rise – 02/11/2017
http://www.telegraph.co.uk/business/2017/08/29/britains-banks-cough-30m-arnold-schwarzenegger-ppi-advert/: Britain’s Bank cough up 30mon Arnold Schwarzenegger PPI advert – 29/08/2017