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UK banks Lloyds, Royal Bank of Scotland, and Barclays saw huge profit reductions in their first and second quarter performance reports because of payment protection insurance refund allocation and the continuing struggle with their past misdeeds, including troubles with international regulators.

RBS was fined about £396m for litigation and conduct charges from the US Federal Housing Finance Agency due to mis-selling toxic mortgage-backed securities from 2005 to 2007. Lloyds set aside an extra £1bn total to add to all its PPI refund troubles. This had prompted ETX Capital Senior Market Analyst Neil Wilson to say Lloyds has PPI like “a thorn on its side.”

Barclays announced an extra £700m total for its PPI misgivings during the first half of 2017. According to Barclays CEO Jes Staley, all reforms the company intends to introduce to better its services were already performed. He said its effects should be underway.

Barclays is also involved in the Libor scandal in 2011. Several Barclays employees had manipulated the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor). The results of these actions had reverberated throughout the entire industry, having many banks pay millions of pounds as penalties.

The banks have a total recompense package for mis-sold PPI at approximately £40bn.

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