Lloyds sees PPI bill raised by £750m

Written By Unknown on Selasa, 29 Oktober 2013 | 15.36

29 October 2013 Last updated at 03:56 ET

Lloyds Bank says it will set aside another £750m for compensation for mis-sold personal protection insurance (PPI), taking the total to £8bn.

UK banks have reserved £16bn to compensate customers sold unnecessary or irrelevant insurance, with Lloyds setting aside more than any other.

The bank, still part-owned by the taxpayer, made the announcement as it reported its third-quarter results.

Its profits for the nine months to the end of September were £1.69bn.

The charge for PPI had an impact on the third-quarter profit figure and helped to leave Lloyds with a loss of £440 million for the three months to the end of September.

The government recently sold £3bn of its stake in the bank and still retains more than a third of the company.

During Lloyds' bailout in 2008, the government bought shares at an average price of 73.6p.

The average market price at the time was 61p, so the government booked the difference as a loss and added it to the national debt.

Lloyds recently revived the TSB brand and has transferred five million accounts to the new bank, which started operating a month ago.

The new bank will be sold off next year, as part of a process ordered by the European Commission to provide greater competition.


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