CYBG warned overnight that it expected to make a further £300mln-£450mln of provisions for costs for historical payment protection insurance misselling after receiving more than eight months’ worths of customer enquiries in August.
There were around 340,000 enquiries over five weeks, with roughy 120,000 in the final three days. Moreover, there were circa 5,000 complaints per week during the first four weeks of August and an additional 2,000 complaints in the final three days.
The “unprecedented volume” of PPI information requests received last month came in the run up to the PPI complaint deadline of 29 August, which CYBG said was in line with the rest of the industry.
Indeed, RBS had announced a £600mln-£900mln provision on the same day.
UBS said it “looks fairly obvious to us that very significant increase in the complaints volume in August is what the broader industry experienced”.
Analysts at the bank saw “negative read-across to other UK banks, including Lloyds, Barclays and HSBC as reasonable, with updates from these banks looking increasingly likely in the light of CYBG’s announcement”.
JPMorgan Cazenove agreed that there were “read-across concerns for other UK banks”