Thursday, 27 July 2017

Lloyds stung £1bn by PPI and mortgage arrears errors

Lloyds has taken a near £1bn hit - revealing it has set aside another £700m for PPI claims and £283m over mortgage arrears errors.
Sky News revealed on Wednesday that the banking group was to repay nearly £300m to about 600,000 customers over failings in the way it applied mortgage arrears policies.

The lender said on Thursday that it had also put aside extra cash to address the mis-selling of payment protection insurance to reflect current claim volumes, reinforcing its status as by far the worst-exposed lender to the PPI scandal.

It comes just four months after the bank announced a £350m writedown to cover the mounting bill, which has now reached more than £18bn.

The mortgage redress scheme is understood to centre on the way Lloyds applied policies relating to financial difficulty assessments, leading to some customers being charged in error between 2009 and 2016.

Nevertheless, Lloyds' half-year results reflected a continuing strong performance by the underlying business, despite the continuing spectre of ultra-low interest rates.

It reported pre-tax profits of £2.5bn in the first six months of 2017 - up 4% on the same period last year.

This includes the additional PPI provisions which are set to cover around 9,000 claims per week through to the deadline set at the end of August 2019.
Total income also increased by 4% to £9.3bn in the six months to 30 June.

SKY     News.