LONDON: The UK’s big four high-street banks face another £19bn of conduct and litigation charges by the end of 2016 as they continue to pay the price for past mistakes, according to analysts.
The estimates, from ratings agency Standard & Poor’s, are for Barclays, HSBC, the Royal Bank of Scotland and Lloyds Banking Group. They come on top of £42bn of charges in the five years to 2014.
Including other banks, such as Clydesdale, Yorkshire and Co-op, and the Nationwide and Yorkshire building societies, the total cost of the scandals to hit 13 financial firms over the same period amounted to £48bn.
Lloyds, which is now less than 20% owned by the taxpayer, has incurred a greater cost than any of its rivals because of mis-sold payment protection insurance (PPI). Its PPI bill has topped £12bn, taking the bank’s total provisions for such conduct issues to more than £14bn.
