Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Lloyds takes fresh mis-selling hit as PPI costs hit £10bn

Lloyds takes fresh mis-selling hit as PPI costs hit £10bn

Lloyds Bank has been forced to store an additional £600 million to cover the mis-selling of payment protection insurance (PPI).

The news, revealed in its interim update, comes a few days after it was fined £217 million for Libor manipulation.

The latest provision clouded a 32% rise pretax profits, which hit £3.8 billion in the first half.

In total the bank has taken provisions of £875 million in the first half for a number of legacy issues.

Overall PPI has cost the bank £10.4 billion, although it pointed out that the volume of PPI complaints continues to fall and was around 30% lower on the same period last year.

Despite this legacy issues the bank feels it is close to being able to resume its dividend payments, which were suspended during the credit crunch. It would be applying the Prudential Regulation Authority (PRA) to start payments at ‘modest’ level in the second half.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter