Lloyds Banking Group has set aside a further £1bn to pay back customers who were unfairly sold to in the PPI mis-selling saga.
The extra provisions weren’t exactly a surprise and have been expected since the FCA announced the extended claim by date, now set for 2019.
The announcement was made at the same time the bank confirmed that pre-tax profits for the three months to the end of September fell 15% to just over £800m.
Lloyds is 9% owned by the state, but the government scrapped plans to sell its remaining shares in the bank to members of the public.
The government now plans to sell the shares via a ‘trading plan’, with small shares sold to institutional investors.
The new provision for PPI claims comes on top of the £16bn Lloyds has already contributed to the scandal – of which it was responsible for over 50%.
In the third quarter, Lloyds also took a hit of £150m relating mostly to the sales of packaged bank accounts.