Good morning from the City AM liveblog team.
Just how much is the motor finance redress scheme going to cost Britain’s biggest banks?
Yesterday’s results from Barclays offered an insight – and it wasn’t pretty.
The Canary Wharf-based bank almost quadrupled the provision it had set aside to cover motor finance claims, from under £100m to more than £300m.
On Monday, it was the turn of Secure Trust Bank, which said it had more than tripled the money it had set aside for a redress scheme to £21m, while the Bank of Ireland doubled its own provision to £350m.
The decisions follow a similar move by Big Four bank Lloyds last week, in which it upped its provision by an extra £800m to a total of £2bn, while Close Brothers upped its own provision by around 80 per cent to £300m.
Quite how big a hit will the saga take to banks’ bottom line? Today Lloyds Bank will release its quarterly results – expect some stern words on the matter by boss Charlie Nunn.
Here’s a summary of our top headlines from yesterday:
- Inflation stays hot as UK’s economic woes deepen
- Gilt yields drop as Reeves crosses fingers to reap benefits
- Google ‘disappointed’ by CMA’s Android and Chrome ruling
- Virgin Wines blames government for inflationary cost pressures
- PayPal-backed UK fintech kicks off legal battle over unpaid fees
- Lawyers sound alarm over proposed tax target on LLPs
- Reeves’ tax grab could ‘wipe £4bn out of the stock market’
