4-Aug-14
HSBC will become the latest bank to take new charges of mis-selling payment protection insurance as the UK's largest lender set aside billions of pounds for past misconduct.
For mis-selling payment protection insurance was confirmed last week as the sector most serious scandal for the total amount up more than 23 billion pounds, the four banks have taken further 1.7 billion pounds of costs.
The producer price index - rose to a kind of insurance is to cover up the payments, the loan if the borrower sick or lose their jobs - has weighed on profits in the bank than the industry expected.
HSBC has set aside £ 2.1 billion for PPI claims, so far, less than competitors Lloyds, Barclays and Royal Bank of Scotland, but still more than expected, when the scandal emerged. JPMorgan Cazenove want it to take further £ 75 million cost of the second quarter of this year, the bank reported second-quarter earnings on Monday.
HSBC has faced a number of other allegations of misconduct, including fines $ 1.9 billion, regulators in the United States in 2012 for violation of anti-money laundering rules and violations of sanctions from. HSBC is also under investigation over LIBOR manipulation.
Richard Lloyd, executive director of the consumer group, the? Said the latest round of regulations - which is significantly higher than analysts had expected - means that PPI is now "by far the UK's biggest mis-selling scandal."
Lenders also faces other litigation costs, some of which have been warnings of renewed conceal their performance in the coming years.
JPMorgan Cazenove analysts estimated attorneys' fees and resettlement will spend a further £ 15 billion Bank of England, in the next three years, at £ 30 billion, over the past three years they have been allocated to the top.
This includes the United States, mortgage-backed securities, and further costs related to the investigation PPI manipulate Libor interest rates and foreign currency exchange costs, potential liabilities.
"Obviously, the risk of litigation will continue to be a key issue for the sector," an analyst at JP Morgan Cazenove Raul Sinha said.
How much attention in litigation has become the bank's logo, Scotland Royal Bank first-half results announcement has 18 dedicated to this area. Ten years ago, litigation issues its earnings statement contained only two paragraphs.
In addition to PPI, the bank's first half performance blocked in LIBOR and pay provisions of other mis-selling of retail products. A total of four banks - Barclays, Lloyds Banking Group, Royal Bank of Scotland and Santander UK - set aside £ 2.3 billion to cover the cost of misconduct in the first half.
Barclays Bank has taken a surprisingly high increase of 900 million pounds of PPI ready in the first half of this year. Lloyds set aside £ 1.1 billion to pay for PPI and other issues, while the Royal Bank of Scotland to break up its charge by a further 250 million pounds and Santander UK were prescribed PPI in the first three years, with 65 million charge pounds.
The latest jump PPI cost is higher than expected claims from 2005 to promote some of the policies taken out before the bank said, about two-thirds of the debt through debt management companies, which encourages customers to submit applications for compensation and taken to the fees.
Royal Bank of Scotland also reported a response sent to the customer, this year's letter, telling them that they can make a claim surge.
Analysts and banks are expected to decline in the cost of PPI in the coming year, although Wheatley, chief executive of the financial behavior of the Authority, in February said it was unintentional introduction of a time limit spending to the customer, even though some banks want a deadline.
"We are close to the end," Sinha said. "I doubt there will be any other equivalent size."
Lloyd predicted that its current 200 million pounds of PPI's monthly outgoing will fall to about 100 million pounds per month by the end of June next year. George Culmer, chief financial officer, said the bank has been through the work of 95 yuan from the positive message timeouts lead to customer claims ratio is close to completion of the review may have been underpaid existing claims.
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