With just four months to go before the PPI claims deadline Lloyds Banking Group (LBG) have added another £100 million to their PPI compensation pot.
This takes their overall compensation figure to £19.525 billion – by far the biggest figure in the UK banking industry.
Half of all compensation paid
The group – which also includes Halifax and Bank Of Scotland – is credited with mis-selling more PPI policies than any other financial company and is responsible for around half of the £34.4 billion compensation paid out since January 2011.
Announcing its half year figures in August last year the bank added £460 million to its provision, making a total £1.15 billion for the year, but said it could not rule out the need for further increases.
In a statement it said: “The total amount provided for PPI represents the Group’s best estimate of the likely future cost.
However, a number of risks and uncertainties remain including with respect to future volumes. The cost could differ from the Group’s estimates and the assumptions underpinning them, and could result in a further provision being required.
“There is also uncertainty around the impact of regulatory changes, FCA media campaign and Claims Management Company and customer activity, and potential additional remediation arising from the continuous improvement of the Group’s operational practices.”
At the time the bank said its provision was based on an estimated 11,000 new PPI complaints a week up to thue claims deadline, but in its latest financial report it admits it is still receiving more than 13,000 new complaints a week
The bank has reported unchanged profits of £1.6 billion, but has warned that it has seen some of its assets deteriorate due to continued Brexit uncertainty.
However, chief executive Antonio Horta-Orsorio issued an upbeat statement, saying: “While Brexit uncertainty persists and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance and returns for our customers and shareholders.”