Lloyd’s interim results expected to post further £1bn for PPI claims
Lloyds half-time results are expected this week and news has emerged that it is expected to make a further £1bn provision for mis sold payment protection insurance. If this does happen then the total provision Lloyds has made for mis sold PPI will exceed £13bn! The markets had been hoping that the scandal of mis sold payment protection insurance at Lloyds was perhaps finally drawing to a close however both Antonio Horta-Osario the CEO and George Culmer the Chief Financial Officer have been unwilling to make any statements about when the compensation payments for PPI mis selling might end.
Lloyds reported that during 2014 the volume of PPI complaints fell 22% from 2013 however the bank predicted that the decline in the numbers looking to reclaim mis sold PPI would be a gradual one. Financial commentators believe that this picture will be repeated amongst the other major banks when they report their interim results.
Solicitor Paul Cahill comments:
“Once again Lloyds are shown to be heavily mired in the PPI mis selling scandal. Whilst the financial analysts are predicting that the strong profits recovery at Lloyds is likely to have continued and therefore that Lloyds will post strong interim results overall – indeed some financial commentators are expecting profits to have more than doubled this apparent good news story is overshadowed by the continuing provisions for mis sold PPI.”
Content correct at time of publication