Banks may face £10bn PPI bill

City analysts reveal that the banks involved in the mis-selling of PPI policies could face up to £10bn in compensation claims.

UK banks on the high streetThe banks involved in the mis-selling of PPI policies could face up to £10bn in compensation claims, according to a number of City analysts.

According to the Telegraph, it mentions that some bankers think the number may end up being considerably higher than the initial estimation of £4.2bn from the FSA and fear that it could be closer to the £10bn mark or may even top it.

Some analysts at Deutsche Bank have warned that they anticipated redress claims to total approximately £8bn.

The news follows Lloyds reserving £3.2bn to cover PPI claims. Deutsche Bank have said that Barclays and Royal Bank of Scotland, which have the largest shares in PPI after Lloyds, may have to pay out £1.1bn and £1bn respectively. Some analysts predict these two banks may face up to £1.6bn. Bank shares for Lloyds, RBS and HSBC fell 8%, 3% and just under 1% respectively.

“In our view, the charges taken against the PPI issue would have been taken after discussions with the FSA and have a negative read-across to the other UK bank, which may be now expected to take similar charges,” mentioned Nomura analysts in a note to the clients.

The British Bankers’ Association (BBA) lost to the judicial review last month, against an attempt to revoke new regulation on the sale of PPI products, but have until the 10th May to appeal against the FSA’s verdict. Lloyds are the only bank so far to have already withdrawn from challenging the review

Register for Updates

Register to receive news updates straight to your inbox.
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.
  • This field is for validation purposes and should be left unchanged.

Newsletter

Sign up to our newsletter
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.
  • This field is for validation purposes and should be left unchanged.

Technology Form

  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.

Get in touch with us

We're ready to show you the future of consulting. Just fill out the form below!
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.

PPI Case Handler Profile

Complete your details below to receive our PPI Case Handler profile.
  • We will only send you marketing information using the details you have provided to deliver, develop and promote our products and services if you give us consent to do so. Please use the options below to indicate if you consent to us using your information for this purpose. For further information please read our privacy notice.
  • This field is for validation purposes and should be left unchanged.

Subject Access Request

    We require basic personal details to locate you on our records.

Request to Delete your Personal Data

    We require basic personal details to locate you on our records so we can delete your information.

Request to Withdraw Opt-In

    We require basic personal details to locate you on our records.