The aforesaid amount is in addition to £1bn provided in 2011 and £300m in the first quarter of 2012.
Barclays chief executive Natalie Ceeney was quoted by BBC News as saying, "The volume of PPI complaints doubled in the first half of 2012 – and has continued to increase since then with up to 1,500 new cases now arriving each day."
PPI is an optional insurance policy often taken with loans, mortgages, overdrafts, credit cards or store cards that could cover you if you can’t meet your repayments due to involuntary unemployment, illness, accident or disability.
The higher compensation charges comes at a time when the UK bank is struggling to reinstate its damaged reputation due to a number of scandals, such as the Libor-fixing affair and the mis-selling of interest rate swap arrangements.
UK Financial Ombudsman Service (FOS) has already received nearly 100,000 PPI complaints during the first six months of current fiscal.
Lloyds Banking Group has set aside a provision of £4.275bn to date, while RBS, HSBC £1.335bn and £1.087bn respectively.
