Lloyds’ management are going to be happy when the PPI saga is over. Sadly for the bank the nightmare is still very much alive as evident by an increase in charges and provisions linked to mis-selling claims.
That has also resulted in the share buyback programme being suspended, thereby removing one of the few positive supports to its share price.
Lloyds’ shares have been drifting downwards for months as investors worry about the scale of PPI claims, pressure on lending margins and also the general impact on Brexit on consumer finances and whether it could lead to an increase in bad debts.
AJ Bell’s Russ Mould said: “Lloyds isn’t alone with these issues. Royal Bank of Scotland and CYBG last week warned of a further hit from a deluge of late PPI claims.
“Investors in Lloyds’ shares are sadly getting used to a constant string of bad news. Once the PPI saga is wrapped up, one will wonder what the next dark cloud will be to hang over the sector.”