Lloyds Q3 profits almost wiped out by £1.8bn PPI hit

Lloyds Banking Group has put a further £1.8bn aside for payment protection insurance (PPI) complaints before the August deadline, almost wiping out its third quarter profits.

The £50m of Q3 profits before tax is down from the £1.8bn profit over the same three-month period a year ago – and the latest hit, which is at the top end of estimates, takes the bank's total bill for the PPI scandal to £21.8bn.

The City regulator had set a 29 August deadline for compensation claims for PPI, prompting a surge of claims.

PPI, initially intended to cover loan payments for customers who for example might have fallen ill, but has often been sold to people who did not want or need it, has become the banking industry’s biggest mis-selling scandal.

Lloyds accounts for the largest share of the total bill for the PPI scandal, which has now reached £48bn, and is expected to keep on rising.

    Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.