Lloyds Banking Group will take another hit from payment protection insurance mis-selling this week, taking its bill for the scandal close to £18bn.
The firm, which has already racked up the biggest PPI compensation costs of any British bank, is expected to set aside a further £400m when it posts first-half profits on Thursday.
A day later, Barclays is poised to slump into the red when it unveils a £1.2bn loss from the recent sale of a stake in its African operations.
In March, the Financial Conduct Authority fixed an August 2019 deadline for aggrieved customers to file complaints over PPI. That was longer than the City expected and prompted Lloyds to book a £350m provision, taking its total for the scandal to almost £17.4bn since 2011. Since then the volume of PPI claims has been higher than anticipated, raising expectations that Lloyds will be forced to earmark more money for compensation.