HSBC sets aside further £400m for PPI payouts

21 February 2017
Image

HSBC has increased the amount of cash put aside for payment protection insurance (PPI) claims, its latest annual results show.

The bank increased its provision by £396 million during 2016, bringing its current pot up to £739 million. It says extra funds are needed as there has been a delay in the regulator confirming the deadline for PPI complaints.

This is still expected to be set for June 2019 and will be confirmed by the Financial Conduct Authority (FCA) in the spring.

 

HSBC has now paid out around £3.3 billion for PPI complaints since the scandal broke. It sold more than 5.4 million PPI policies and has received around two million complaints so far.

The FCA reports that a total of £242.1 million was paid out by all banks in November 2016 to customers who complained about mis-sold PPI – the most recent data available. This means the total amount paid since January 2011 is now more than £26 billion.

Across its global operation, HSBC says it made a pre-tax profit of $7.1 billion (£5.7 billion) during 2016. This was 62% lower than the previous year thanks to a number of one-off factors, including the sale of its business in Brazil.

The bank closed 117 branches across the UK during 2016. It says this change was due to the increased use of online banking.

Add new comment