Barclays sets aside a further £1bn for mis-selling

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Barclays (LSE: BARC.L - news) has increased its provisions for mis-sold interest rate swaps and payment protection insurance (PPI) by £1bn, taking total provisions to £3.45bn.

It has set aside a further £400m to compensate small businesses after the financial regulator last week said more than 90pc of interest rate swaps sold had breached its rules.

This takes the bank’s provisions for redress on these products to £850m, the bank said in a statement on Tuesday.

Barclays also set aside another £600m to cover claims for PPI mis-selling due to “higher than anticipated” responses to letters it sent out in the fourth quarter, taking its bill for the policies to £2.6bn.

Later this morning Antony Jenkins, the new Barclays chief executive, and Sir David Walker, the Barclays chairman, will give evidence before the Parliamentary Commission on Banking Standards.

On Friday, he waived his bonus for 2012 admitting it would be “wrong” to be rewarded after a year of scandals - as the bank was hit with more questions over Qatar’s investment in 2008.

In a statement Mr Jenkins, who took over from Bob Diamond in August and was in line for a bonus of around £2.75m, said: “The year just past was clearly a very difficult one for Barclays and its stakeholders, with multiple issues of our own making besetting the bank.

"I think it only right that I bear an appropriate degree of accountability for those matters and I have concluded that it would be wrong for me to receive a bonus for 2012 given those circumstances.”

Over the weekend, Barclays also announced that finance director, Chris Lucas, would retire. He is one of the last executives still at the bank from the era of former chief executive Bob Diamond and was one of a collection of senior employees who waived his 2012 bonus after Barclays was fined £290m for its part in the Libor-rigging scandal.

Next (Other OTC: NXGPF - news) week Mr Jenkins unveils a blueprint for rebuilding Barclays' reputation.

Separately, Barclays announced the appointment of Diane de Saint Victor as a non-executive director. She is currently General Counsel and Company Secretary at ABB (NYSE: ABB - news) , the Swiss engineering conglomerate.