View more on these topics

Lloyds profits dragged down by PPI claims deadline

Antonio-Horta-Osorio-700x450.jpg

Lloyds Banking Group has posted an 11 per cent drop in profits for 2015 after it set aside £4bn for missold payment protection insurance.

The bank has reported a pre-tax profit of £1.6bn, compared with a £1.8bn profit in 2014.

Of Lloyd’s total £4bn PPI provision, £2.1bn was set aside between October and December, after the FCA set out plans to impose a deadline for consumers to bring PPI complaints. Consumers are likely to have at least until spring 2018 to complain.

The Government’s stake in Lloyds has fallen to around 9 per cent. Lloyds also incurred a cost of £745m in it sale of TSB to Spanish bank Banco Sabadell. Lloyds was forced to sell off TSB by the EU following the state aid the bank received during the financial crisis.

Lloyds has reduced its total bonus pool by £30m after the bank was fined a record £117m in June over failings in the way it handled PPI complaints.

Chief executive Antonio Horta-Osorio has been handed a total pay package worth £8.8m.

He says: “We made a strong start in 2015 to the next phase of our strategy and have delivered a robust financial performance, enabling increased dividend payments.

“We remain confident in our ability to become the best bank for customers and shareholders, while continuing to support the economy and helping Britain prosper.”

Recommended

Clock money 620 x 430
1

Banks to foot bill for £42m PPI awareness campaign

A campaign to raise awareness of a new deadline on complaints for missold payment protection insurance could be funded by lenders, according to a consultation paper from the FCA. In documents published today, the FCA proposes a two-year campaign to forewarn consumers of a 2018 halt on complaints, which it estimates would cost £42.2m. The […]

FCA logo new 620x430.jpg
2

FCA sets out plans for PPI claims deadline

The FCA plans to set a deadline for consumers to make complaints about missold payment protection insurance. Once the deadline has passed, consumers will lose their right to have PPI complaints reviewed by firms or referred to the Financial Ombudsman Service. The FCA says it wants to consult with the industry before setting the deadline, […]

Antonio-Horta-Osorio-700x450.jpg

Lloyds’ total PPI bill hits £13.4bn

Lloyds Banking Group has set aside an additional £1.4bn to pay claims for missold payment protection insurance, taking its total PPI provision to £13.4bn. In the bank’s results for the first half of the year, published today, Lloyds says it is continuing to see complaints driven by claims management firms, and is paying out higher […]

FCA logo glass 620x430

FCA hits Lloyds with record £117m fine over PPI complaints

The FCA has fined Lloyds Banking Group a record £117m for failing to properly handle payment protection insurance complaints. The fine, issued against Lloyds Bank and Lloyds subsidiaries Bank of Scotland and Black Horse, is the largest ever retail penalty issued by the regulator. The bank is now reviewing or automatically upholding around 1.2 million […]

CGT entrepreneurs' relief

Entrepreneurs’ relief is due, subject to meeting certain conditions, in respect of capital gains arising on ‘material disposals of business assets’. These ‘business assets’ include: Read more

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment