Clydesdale takes PPI hit

NATIONAL Australia Bank’s UK unit Clydesdale Bank has said it will make an additional provision of £100m to cover compensation for people sold insurance they could never claim or did not know they were buying.

The mis-selling of debt repayment insurance policies could cost Britain’s banking industry some £8bn.

“The provision reflects an assessment of future PPI claims based upon estimates, statistical analysis and assumptions in relation to a wide range of uncertain factors, including how many PPI claims will be made against Clydesdale Bank PLC, for what value, and the prospects of mis-selling being established in relation to those claims,” NAB said yesterday.

“Clydesdale Bank will continue to work to resolve PPI claims promptly and fairly.”