Tue, 21st May 2019
Lloyds Banking Group has set aside another £460m for PPI mis-selling claims. The bank has now allocated a total of more than £19.2 billion for such claims, and says that it expected 13,000 PPI complaints a week over the next calendar year.
The allocation came in a trading statement, in which Lloyds said that its profits for the first six months of the year had increased by almost a quarter. The group had made pre-tax profits of £3.1 billion, up 24% on the previous tradiny year.
Antonio Horta-Osorio, the Chief Executive, said that the bank had delivered a strong and sustainable financial performance, with increased profits, better returns, and a strong capital build. Lloyds said that the latest change was driven by the increased volume of complaints that they had seen over the last six months, and the associated admin costs. The group said that it was planning for 13,000 complaints a week, but that any extra complaints above that level would potentially cost it an additional £150 million.
Lloyds’ share price rose by almost two percent during early trading, but the price is still lower than it was one year ago. Analysts note that the chief executive, who took over in 2011, has done a good job of turning the company around from an annual loss to a strong profit, but that share prices have not risen accordingly because of the fears of how Brexit could affect the economy in the UK.