The group, one of Britain’s top five banks, set aside £1 billion in the six months to June 30 to cover refunds for customers who were mis-sold PPI. But stripping out the PPI provision, Barclays would have seen profits increase 24% to £3.7 billion in the period – ahead of City expectations.

The figures are the latest in a week of half-year banking results, which started yesterday with HSBC revealing a better-than-expected 3% increase in pre-tax profits to 11.5 billion US dollars (£7 billion). The group saw reported pre-tax profits at its retail and business banking division drop 63% to £446 million, but this includes the PPI hit.

Barclays offered some reassurance for the UK Government, confirming it was meeting its Project Merlin agreements after lending £20 billion to businesses in the first six months, in line with its £40 billion target for the full year.

Sally Bowyer, Managing Director of Brunel Franklin said: “Everyone accepts that banks provide a valuable service and are entitled to make fair and reasonable charges for services. But people shouldn’t be sold PPI without being furnished with the full facts. PPI mis-selling cases serve as timely reminder of how careful we all need to be when taking out new loans and other credit card agreements.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51