LONDON (dpa-AFX) - U.K.-based lender Barclays PLC (BARC.L) on Wednesday said it has increased the provision recognised by Barclays and its subsidiary Clydesdale Financial Services Limited as of 30 September 2025 for motor finance compensation from 90 million pounds to 325 million pounds.
Barclays and Clydesdale Financial Services Limited had recognised a provision of 90 million pounds in their respective accounts for the year ending December 31, 2024. This provision was also reassessed as at June 30.
The reassessment of provision follows the Financial Conduct Authority's consultation paper CP25/27 on a proposed Motor Finance redress scheme published on October 7. The FCA proposal states that historical operations from April 2007 would fall within the scope of the FCA redress scheme.
Barclays said it had ceased lending in the motor finance market in late 2019.
The additional charge of 235 million pounds would be recognised in Barclays' third quarter results and is estimated to reduce Barclays PLC's Common Equity Tier 1 capital ratio by approximately 5 bps.
Barclays notes that the final terms of the compensation scheme remain uncertain pending responses to the consultation paper and publication of the FCA's Policy Statement and final scheme rules, which is currently expected in early 2026.
Barclays also intends to make representations to the FCA in the matter.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
