PPI Claims to Lead to Headline Loss for Barclays in 3Q

Morningstar's fair value remains unchanges despite Barclays' PPI claims set to fuel a headline loss in the third quarter

Holly Cook 18 October, 2012 | 5:01PM
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Shares in Barclays (BARC) fell back 1.5% on Thursday after the bank announced that its third-quarter earnings, which it will report on October 31, will include an additional £700 million for payment protection insurance (PPI) claims as well as a £1.1 billion non-cash own-debt loss.

Barclays consequently expects to report a headline loss of about £100 million for the third quarter, with underlying profit before tax of about £1.7 billion.

"We're not surprised by the news, as UK PPI claims continue to be significantly higher than banks' initial estimates," commented Morningstar banking analyst Erin Davis immediately following the news.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC198.86 GBX1.00Rating

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites