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

Will open banking revolutionise the lending industry
Adam Cadle speaks to Jack Tenwick, Head of UK Sales, Yolt Technology Services, about how to get the most out of your lending business and the role of open banking

Mortgage Insider Series 2 Episode 5: Outlook for the UK economy
Listen to our latest episode where we discuss the outlook for the UK economy. We hear from William Hobbs, Chief Investment Officer at Barclays Investment Solutions, who gives his view on what lies ahead for the UK after an unprecedented year of lockdowns, economic turbulence and business uncertainty.


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.