Ethical Performance
inside intelligence for responsible business
 

inbrief

Legal bills will cost banks £19bn

June 2015

Compensation payouts and legal bills will cost the big four UK banks £19bn ($29.83bn, €26.55bn) during this year and next, reports the credit ratings agency Standard & Poor’s.

These payments will be in addition to the £42bn already paid out by the four banks in the past five years – and the £6bn levied on the next nine largest lenders.

Mis-selling, one of the banks’ main ethical breaches, will account for just over £5bn of the £19bn, say the Standard & Poor’s analysts. Other litigation could cost another £13bn.

The cost for the two years is only slightly less than the £22bn paid out by the four banks in the past two years. The analysts said: “We doubt that these ongoing charges will lead on their own to negative rating actions, primarily because we believe that the affected banks have sufficient capital buffers, according to our assessments.”




Standard & Poor's | UK & NI Ireland | Compensation

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