Barclays has set aside an extra £700m to meet compensation claims for mis-selling payment protection insurance.
The news came as the bank said costs related to the sale of its Africa business had pushed it into a £1.2bn loss in the first half of the year.
The sale of the Africa business was part of Barclays’ plan to focus on the UK and US.
Stripping out the losses from the Africa sale, Barclays posted a 13% rise in group pre-tax profits to £2.34bn.
Barclays chief executive Jes Staley said: “Our business is now radically simplified, the restructuring is complete, our capital ratio is within our end-state target range, and, while we are also working to put conduct issues behind us, we can now focus on what matters most to our shareholders: improving group returns.”
Barclays said it had now set aside a total of £2.1bn to deal with PPI complaints, but this was open to review.
Claims are expected to rise after the Financial Conduct Authority launches a campaign in August to encourage consumers to decide whether to act before the final deadline to bring a PPI complaint in August 2019.
Earlier this year, Barclays sold a near 34% stake in Barclays Africa Group, leaving it with just 15% of the business.
The company said the sale of the stake had led to a loss of £1.4bn, and it had also taken a £1.1bn charge on the sale.