Claims still pouring in
Lloyds still burdened by PPI as profits soar
Lloyds continues to suffer PPI claims (pic: Terry Murden)
Lloyds Banking Group has reported a 23% rise in pre-tax profits to £3.1 billion for the half year, but continues to be burdened by the mis-selling of payment protection insurance (PPI).
The group, which includes Bank of Scotland, Halifax and Scottish Widows, has set aside a further £460 million in costs for PPI mis-selling claims, adding to the £18.8bn it has already pad out. The bank said it expected 13,000 PPI complaints a week until August 2019.
The provision came as Lloyds said its profits for the first six months of the year rose by nearly a quarter.
Chief executive António Horta-Osório said: “We have delivered another strong and sustainable financial performance with increased statutory profits, higher returns and a strong capital build.”
Lloyds said it was committed to maintaining the UK’s largest network of branches.
It said it also had the largest digital bank in the UK, with active users increasing to almost 14 million, including about 10 million mobile banking users.
The government sold its last shares in Lloyds in May 2017, eight years after pumping in £20bn to rescue it.