08443 579321 | Mobile 01202 835111

Lloyds to add ANOTHER £400m to it’s mis-sold PPI bill on Thursday.

Lloyds Banking Group will take ­another hit from payment protection insurance mis-selling this week, taking its bill for the scandal close to £18bn.

The firm, which has already racked up the biggest PPI compensation costs of any British bank, is expected to set aside a further £400m when it posts first-half profits on Thursday.

A day later, Barclays is poised to slump into the red when it unveils a £1.2bn loss from the recent sale of a stake in its African operations.

In March, the Financial Conduct Authority fixed an August 2019 deadline for aggrieved customers to file complaints over PPI. That was longer than the City expected and prompted Lloyds to book a £350m provision, taking its total for the scandal to almost £17.4bn since 2011. Since then the volume of PPI claims has been higher than anticipated, raising expectations that Lloyds will be forced to earmark more money for compensation.

It will dent Lloyds’s pre-tax profits, which analysts expect to rise 17pc to almost £2.9bn. Lloyds has found it difficult to put the mis-selling scandal ­behind it. Last October, following ­another £1bn hit, George Culmer, the finance chief, said he hoped it would be “the last big PPI provision”.

Barclays is also expected to swing to a first-half net loss, from a £1.1bn attributable profit a year earlier, following the sale of a 33.7pc stake in its African arm. Excluding the Africa deal, analysts expect pre-tax profits to rise to around £2.9bn compared to almost £2.1bn in 2016.

Leave A Comment