The Lloyds Banking Group has today announced that it has taken a huge £1.8bn hit from PPI mis-selling compensation claims – which has almost wiped out its third quarter profits.
Lloyds has now had to pay out almost £22bn in compensation for payment protection insurance (PPI).
This latest update in PPI payouts meant that the bank reported profits of just £50m, and had a knock-on impact on the first nine months profits, which have fallen 40% compared to the previous year, to a total of £2.9bn.
Lloyds Bank CEO, Antonio Horta-Osorio, said: “I am disappointed that our statutory result was significantly impacted by the additional PPI charge in the third quarter, driven by an unprecedented level of PPI information requests received in August.
“We will maintain our prudent approach to growth and risk whilst continuing to focus on reducing costs and investing in the business to transform the group for success in a digital world.”