Lloyds Banking Group has set aside another £1bn to pay UK customers who were mis-sold payment protection insurance (PPI). The banks’ total compensation bill to date is £5.275 billion. The PPI provisions have contributed to a pre-tax loss of 144 million pounds at Britain’s biggest retail bank.
In an interview with the BBC, Lloyds Banking Group’s chief executive Antonio Horta-Osorio said, “The volume of complaints received in relation to legacy PPI business during the third quarter declined when compared to the previous quarter. However, it remained above the level which we anticipated at the time of our half-year results and as a result the group believes it is appropriate to increase its provision for expected PPI costs by £1bn”.
Despite the losses, shares rose by seven percent in morning trading on November 1.