Insurance
Lloyds Banking Group sets aside another £1.8bn for PPI claims
Lloyds Banking Group is increasing its provision for the mis-selling of payment protection insurance (PPI) by another £1.8bn, bringing the total to nearly £10bn.
But it also said underlying profits for 2013 would be £6.2bn – nearly double what analysts have been expecting, the BBC reports.
The increased provision reflected a greater number of successful complaints, the bank said.
In October, Lloyds increased its PPI provision by another £750m.
Lloyds also said it would be setting aside a further £130m relating to the sale of interest rate hedging products to small and medium-sized businesses.
The bank added that the regulator, the Prudential Regulation Authority, would now consider allowing Lloyds to resume making dividend payments, given the group’s improved financial performance.
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“Modest” dividend payments would probably begin in the second half of 2014, the bank said.