Financial News

  • 4 February 2014, 8:45

Lloyds PPI Mis-Selling Provision Up By £1.8bn

Lloyds Banking Group has announced an additional set-aside provision of £1.8bn for payment protection insurance (PPI) mis-selling claims.

The taxpayer-backed high street lender now has a PPI provision of £3bn for 2013.

Lloyds has amassed the largest provision for mis-selling by Britain's high street banks.

Its total PPI mis-selling bill has reached £9.8bn, three times more than bailout rival RBS.

The bank is due to release its full-year results on February 13 and is expected to make a modest statutory profit.

It is also expected to start paying dividends again this year, six years after payments were suspended ahead of a £20bn bailout.

Chief executive Antonio Horta-Osorio said: "We expect to apply in the second half of 2014 to restart dividend payments and to deliver progressive and sustainable payments to shareholders thereafter.

"This will be another important step in our journey to rebuild trust and confidence in our group."

The payments need Prudential Regulatory Authority approval and are expected to be made after June.

Lloyds also confirmed it is writing a prospectus to sell part of the Government's stake, as previously reported by Sky News.

The bank, which owns both the Halifax and Bank of Scotland, now expects 550,000 complaints about PPI.

Business claims continue to mount for Lloyds and it has set aside an additional £130m over mis-selling related to small and medium-sized businesses.

Lloyds was down more than 3% in late trades. Here is the latest share price.

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