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Monday, February 03, 2014

Lloyds Banking Group's £10BN PPI Bill

Lloyds Banking Group's bill for PPI mis-selling claims has risen to almost £10BN, after the group raised its provision for compensation payments by another £1.8BN.
However, the group still expects to make a "small" profit for 2013; the projected "underlying" profit being around £6.2BN.

By happenstance it is now preparing to sell some of the 33% shareholding that rests in the hands of the taxpayers, back to the taxpayers. The earliest the sale could be would be March this year, as and when the 2013 audited results are released.

Antonio Horta-Osorio, chief executive of Lloyds, is quoted by the Telegraph:
"Our profitability, despite legacy issues, is testament to the strength of our business model and the commitment of our people, and has enabled the UK government to start to return the bank to full private ownership."

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