Partner Article

Cost of PPI raised another £1.8 billion at Lloyds

Lloyds Banking Group have set out a further £1.8 billion to compensate those who were missold payment protection insurance (PPI).

The figure is based on the Bank’s expected level of complaints and the associated administration costs.

It follows Lloyds’ decision to set out £170 million in October 2013 for PPI misselling.

The bank said it hoped to resume dividend payments in the second half of 2014, as it also announced a £6.2 billion underlying profit - more than double its 2012 performance.

Any decision to resume dividend payments would be subject to clearance from the Prudential Regulatory Authority.

António Horta-Osório, Group chief executive, said: “Over the last three years we have reshaped, simplified and strengthened the business to create a low-risk efficient Retail and Commercial bank that is focused on our customers and on helping Britain prosper.

“Our significant progress in delivering sustainable improvements in our capital position and our profitability, despite legacy issues, is testament to the strength of our business model and the commitment of our people, and has enabled the UK government to start to return the bank to full private ownership.

This was posted in Bdaily's Members' News section by Tom Keighley .