The total amount Lloyds Banking Group will expend to handle PPI (Payment Protection Insurance) claims is now reaching £10 billion. It has recently been announced that an additional £1.8 billion would be added to the £8 billion that Lloyds has already devoted to compensating those who have been hurt by PPI mis-selling.
Lloyds adds £1.8bn to Total
The Lloyds bank website offers instructions as to how individuals can file claims regarding a PPI policy. More PPI claims could possibly be filed in the coming months. PPI has proven to be highly susceptible to mis-seling despite its possible benefits to those who take out loans or mortgages or engage in other forms of borrowing.
Apparently, many clients are not even aware of whether or not they have a PPI policy, and those interested in learning more about the issue must look to their product statements to find out whether or not premiums have been coming out. On Lloyds statements, PPI premiums could possibly be labeled using any of the following terms: Payment Protection, Mortgage sure, or card or loan protection.
Despite having had to pay out such considerable sums as a result of PPI issues, Lloyds expects to post a relatively small profit for the year. In fact, the 2013 profit Lloyds expects to post could possibly be about £6 billions more than analysts had previously been expecting.
The fact that profits have proved to be healthier than expected is helping Lloyds to be permitted to go ahead with making dividend payments as before. Lloyds has not been making dividend payments since the financial crises began. They are expected to resume dividend payments in the second half of 2014. However, this is later than many analysts had been hoping.
A third of Lloyds Banking Group is owned by the state. Lloyds has made larger payouts to PPI victims than any other bank in the UK. In addition to the almost £10 billion that the bank will have paid out in compensation for PPI claims, the financial institution has also staked out some £130 million to put towards SME compensation payments for mis-sold hedging products.
Quite a few more changes are expected at Lloyds in the coming months. Although the bank is one third state-owned, the UK government is planning to work towards returning the bank to complete private ownership. Lloyds has been getting ready to sell some of the government’s holdings at the bank to the public.
According to Lloyds’ finance director- George Culmer- share sales are expected to start sometime in March. These initial share sales are expected to take place at the same time that audited financial figures for the financial institution are released. It is possible that Lloyds could be completely privatised by the end of 2014.
In early trading as of February of 2014, the value of Lloyds shares had fallen by 2.4 percent. Despite this slight loss, the chief execute at Lloyds- Antonio Horta-Osorio- remained optimistic about Lloyds’ prospects. He was quoted as saying that the financial instution would show “significant progress” and drawing attention to Lloyds profitability, which he described as a “testament to the strength of [Lloyds’] business model”.
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Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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