“In addition, we believe that CMCs that do submit claims that have no PPI policy should bear the cost of processing that claim, otherwise it is always a free option for CMCs, which is neither fair not correct.”.
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“Again, however, the drag of PPI provisions has reared its head with a figure of £1.4bn being rather higher than the market had anticipated, one which brings the cumulative number near to a painful £13.5bn”.
Britain’s financial regulator said in January it was considering imposing a deadline on customers claiming compensation to potentially draw a line under the scandal.
It also took a £660 million charge on the disposal of its stake in TSB, which is being bought by Spain’s Banco de Sabadell.
“This is steadily continuing to recover, with GDP growing, low unemployment and consumer confidence increasing”.
LBG chief executive Antonio Horta-Osorio on Friday said the lender was focused on becoming “the best bank for customers and shareholders while at the same time supporting the UK economy”. The three months to the end of June mark the last quarter in which the bank can make set aside PPI compensation against its corporation tax bill.
ITV rose 2%, or 5p, to 276.6p, after Liberty – controlled by businessman John Malone – said it had upped its holding to 9.9%.
The news came as Lloyds released its first-half results on Friday, posting a 15% year-on-year rise in underlying profits and an interim dividend of 0.75p per share.
Lloyds expects complaints to start to tail off but warned that if they did not it would have to add an extra £3bn to the sum by the end of next year.
In London, Lloyds shares were trading at 8534 pence, down 0.68 percent.
Lloyds also cheered its army of small shareholders by saying that having now resumed dividend payouts it will now consider using any excess capital to distribute special dividends. Further detail about the bank’s plans for distributing surplus capital had been highly anticipated by analysts and investors.
He said that the bank was assuming a significant decrease in claims over the next 18 months but that, if this did not happen, Lloyds would have to add £3 billion to its PPI provision. It maintains its CET1 ratio at a level it thinks enables it to fund growth, meet regulatory requirements and “cover uncertainties” it faces.
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The news will be music to the ears of the chancellor George Osborne, whose government still holds just under 15% in the company, although he has said it aims to sell its remaining stake over the next 12 months.
