The Lloyds Banking group has posted a third quater loss after payment protection insurance (PPI Claims) cost them another £750 million. This brings the total payed out by Lloyds bank for PPI mis-selling to £8bn.

Catalogue of Mis-selling by Lloyds:

In October Lloyds Banking Group admitted to mis-selling of investments : See Article

In August they admitted they were recieving upto 2000 PPI Complaints per day: See Article

In June Lloyds was uncovered and admitted that they were mis handling their PPI Complaints in a delaying tactic: See Article

Recently Maple Leaf Financial helped Mrs J from Leicestershire recover £11,970.22 from Lloyds TSB for her mis sold PPI on her 2 loans and also Mr T from London reclaimed £6,442.00 from Lloyds TSB for mis sold PPI on his loan.

Lloyds back in the red as PPI claims rise again

Lloyds Banking Group slumped to a loss in the third quarter after another £750m hit for payment protection insurance took the bailed-out bank’s total bill for the mis-selling scandal to more than £8bn.

The industry’s total bill for PPI is now close to £20bn and Lloyds said the £8bn included £1.7bn of administrative costs.

Chief executive António Horta-Osório added that discussions were under way with the industry regulator to resume dividend payments for the first time since the financial crisis. He also increased his forecasts for the bank’s margins and heralded the sale of part of the government’s stake last month, which produced a £60m profit.

Horta-Osório said it was likely another tranche could be sold off in 2014 and that he supported the government’s intention to include retail investors in the next sale. Last month, only City investors could participate in the share sale, when 15% of the tranche was sold off at 75p a share.

“The hard work of the last two and half years is coming to fruition,” said the Lloyds boss. He stands to receive 3m shares – worth £2.5m at current prices – if the share price can remain for 30 days in a row above the 73.6p level at which the taxpayer breaks even on its remaining 33% stake, or if a third of the stake is sold at prices over 61p.

But despite his upbeat sentiment, the shares were among the biggest fallers in the FTSE 100, closing 2% lower at 78p. He promised that Lloyds would be a “high-dividend” paying stock in the future. The dividend policy will be outlined at the full-year results in February. “We are back to being a normal company,” he said.

Although the bank remained profitable over nine months, in the third quarter it slumped to a £440m loss because of the £750m provision for PPI and a £600m shortfall arising from losses on sales of businesses in Germany. Over the nine months, pre-tax profit was £1.7bn compared with a £607m loss in the same period last year.

Horta-Osório said he supported the government Help to Buy scheme, which was leading to a significant jump in mortgage applications. He did not give details of the additional number of applications but said it was not just a London phenomenon. The bank is already providing one in four of home loans to first-time buyers, lending £6.7bn to more than 56,000 people by the end of September.

Recruited from the UK arm of Spanish bank Santander to turn Lloyds around, the Portuguese banker said the exit from non-core business had been completed. The bank has pulled out of 21 countries and it is now operating in just 10 as part of its effort to be a largely domestic bank. Troublesome operations in Ireland and commercial banking were also improving, with impairment charges on bad debts falling by 9% to £1.2bn.

The bank has spun out 631 branches under the TSB brand to meet EU demands y the EU that itto reduce its branch network as a result of the £20bn of state aid it received during the 2008 and 2009 bank bailouts. This has cost around £1.6bn and the TSB branches will be floated on the stock market, probably next year.

Lloyds runs a multi-brand strategy – with Halifax and Bank of Scotland also competing with its main brand – and Horta-Osório said Halifax was benefiting from a new service which allows customers to switch bank accounts in seven days.

Full Article:

PPI Claims News

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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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Tim Capper

Bringing you financial news and information in plain english for Maple Leaf Financial. My aim is to help readers understand these often complex financial instruments.