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You can find the current article at its original source at https://www.theguardian.com/business/2019/sep/09/lloyds-ppi-claims
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| Lloyds earmarks up to £1.8bn more for PPI claims | Lloyds earmarks up to £1.8bn more for PPI claims |
| (about 2 hours later) | |
| Lloyds Banking Group will incur a further charge of up to £1.8bn to cover claims relating to mis-sold payment protection insurance after being hit by a surge in claims last month. | Lloyds Banking Group will incur a further charge of up to £1.8bn to cover claims relating to mis-sold payment protection insurance after being hit by a surge in claims last month. |
| Lloyds said the last-minute rush was bigger than expected, and has prompted it to make another PPI charge of between £1.2bn and £1.8bn. At the top end, this is double the £900m charge taken by Royal Bank of Scotland last week, which also saw a last-minute surge in claims. CYBG, which owns the Clydesdale and Yorkshire banks and Virgin Money, also warned last week that it faced a potential bill of £450m for new claims. | |
| The latest charge takes Lloyds’s total compensation bill to nearly £22bn – by far the largest of all the banks. In total, the five major high street banks have set aside more than £40bn to compensate people who purchased often worthless cover in what has become the UK’s largest mis-selling scandal. | |
| Since Lloyds started taking claims in 2011, it has typically received 70,000 PPI information requests a week, but this soared to 600,000 to 800,000 a week in the final weeks before the 29 August deadline. | Since Lloyds started taking claims in 2011, it has typically received 70,000 PPI information requests a week, but this soared to 600,000 to 800,000 a week in the final weeks before the 29 August deadline. |
| Lloyds said the number was “higher than expected, with a significant spike in the final days before the deadline expired”. | Lloyds said the number was “higher than expected, with a significant spike in the final days before the deadline expired”. |
| In light of this, the bank has decided to suspend the remainder of its 2019 share buyback programme, leaving £600m of the £1.75bn programme unused. Lloyds expects capital growth, and its return on equity, to be below its previous guidance, with the final outcome dependent on the actual PPI charge taken. | In light of this, the bank has decided to suspend the remainder of its 2019 share buyback programme, leaving £600m of the £1.75bn programme unused. Lloyds expects capital growth, and its return on equity, to be below its previous guidance, with the final outcome dependent on the actual PPI charge taken. |
| The latest provision comes on top of £550m in PPI charges taken in the second quarter, which pushed down Lloyds’s pretax profits by 7% to £2.9bn for the six months to the end of June. | |
| Lloyds Banking Group | Lloyds Banking Group |
| Banking | Banking |
| Payment protection insurance | Payment protection insurance |
| Insurance | Insurance |
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