Capital Strength Helps U.K. Banks To Weather Additional PPI Charges

In recent days, several U.K. banks have announced the range of additional Payment Protection Insurance (PPI) provisions which they expect to book when they announce their results for the period to Sept. 30, 2019. The early announcements relate to the increase in information requests that banks received ahead of the Aug. 29, 2019 complaints deadline, including an exceptional surge in the final days. As they have still to work through the large volume of requests, and the conversion rate to an upheld complaint may differ from historic experience, each bank has stated that the final provision could be higher or lower than the range published. Against this backdrop, we have reviewed our capital assessments for each banking group. All else

...September 10, 2019 In recent days, several U.K. banks have announced the range of additional Payment Protection Insurance (PPI) provisions which they expect to book when they announce their results for the period to Sept. 30, 2019. The early announcements relate to the increase in information requests that banks received ahead of the Aug. 29, 2019 complaints deadline, including an exceptional surge in the final days. As they have still to work through the large volume of requests, and the conversion rate to an upheld complaint may differ from historic experience, each bank has stated that the final provision could be higher or lower than the range published. Against this backdrop, we have reviewed our capital assessments for each banking group. All else being equal, we do not anticipate any related ratings action, which is consistent with our opinion stated in our broader PPI deadline commentary on Aug. 30, 2019 (see "The Deadline For PPI Claims Has Passed But The Impact On U.K. Banking...

Commentary