PPI compensation hits Lloyds profits
TAXPAYER-backed Lloyds Banking Group revealed lower-than-expected profits today after it took an additional £375m hit to cover payment protection insurance (PPI) claims.
The 40 per cent state-owned bank has now set aside nearly £3.8bn to deal with PPI compensation after a recent increase in the volume of claims.
Lloyds, which warned that the final cost of the PPI mis-selling scandal may change, revealed pre-tax profits of £288m for the three months to March 31, compared with £316m in the previous quarter and City expectations of £500m.