Lloyds total PPI bill is now at £13 billion after it had announced an earmark of £1.4b to deal with mis sold PPI claims.
According to CEO Antonio Horta- Osorio, the announcement was “disappointing” because it “reflects higher than expected reactive complaints with higher associated redress.”
Despite its increased PPI contributions, Lloyds had earned a £1.9b profit, double the amount it made in profits the previous year at £863 million. Lloyds is poised to sell the rest of its remaining public shares to the private sector. From the financial crisis in 2008, Government shares in Lloyds had gone from 43% down to 15% this year.
Lloyds also faces a £117 million FCA-slapped fine for mishandling payment protection insurance complaints.
In total, the payment protection insurance recompense package is now at £26 billion. About £1.7b of the earmarked funds are to go to claims management companies. Lloyds is also paying out £30 million to packaged bank account holders, about a third of the complaints upheld.
“I personally think that the current dripping process has been very successful”.
“We have delivered significant improvements in both underlying and statutory profitability, while at the same time strengthening the balance sheet, improving our customers’ experiences and continuing to support and benefit from UK economic growth”, Horta-Osório said in a statement. “I understand the political commitment to a retail share offer and we will do whatever is needed”.