Investing
Lloyds posts £439m loss as extra PPI claims hit profits
Lloyds Banking Group has reported a loss of £439m in the first half of the year, after the bank was forced to set aside an additional £700m for payment protection insurance (PPI) claims.
This is the second time this year Lloyds has increased the provision, raising the £3.2bn compensation package by £375m in May, following a spike in mis-selling claims.
The extra £700m weighted in on profits in the first half but, on a brighter note, the retail bank increased underlying profit by £715m to £1.1bn.
Antonio Horta-Osorio, the group’s chief executive officer, said the group is on still track to meet financial targets despite reporting a loss.
“We are on track to deliver our strategic aims and we are making significant progress with our financial targets,” said Horta-Osorio
“Mis-sold PPI policies are an industry legacy issue but by redressing those affected quickly we continue to do the right thing for our customers.”
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Lloyds’ share price was slightly dampened by the disappointing results opening 0.50% lower than yesterday to trade around 29.15p.