Despite reporting flat profits due to Brexit and economic uncertainty, Lloyds Bank is setting aside a further £100m for mis-sold PPI claims.
Pre-tax profits for the first quarter were £1.6bn despite analysts forecasting profits of £2.05bn.
The group’s chief executive, António Horta-Osório, said: “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.”#
With the PPI deadline fast approaching and more than £34bn already paid out in compensation across the inidustry, it is anticipated that there may still be many more millions to be paid out against the 64 million PPI policies that were sold in the UK going back as far as the 1970s.
PPI stands for payment protection insurance which was sold with loans, credit cards, mortgages and other types of credit too, like car finance or catalogue accounts. Some “stand alone” PPI policies were also sold – that weren’t linked to particular credit. The PPI deadline set by the the UK’s financial regulator is 29 August 2019.