Lloyds Banking Group are set to pay out £2.5bn in compensation for the final surge of complaints relating to mis-sold payment protection insurance (PPI).
Today, the bank posted a 26% drop in pre-tax profits to £4.4bn as it paid out billions of pounds to customers in PPI compensation. This morning’s announcement brings the total paid out by Lloyds Bank relating to PPI to £21.9bn.
Lloyds said no further provisions were needed as it had already set aside enough money to pay the final compensation charges.
António Horta-Osório, Group Chief Executive of Lloyds said: “In 2019 the Group has continued to make significant strategic progress while delivering solid financial results in a challenging external market. The Group’s statutory performance was impacted by a substantial PPI charge related to the deadline for claims submission. Underlying performance was resilient, reflecting the health of our customer franchise and the strength of the business model.”