Lloyds to end PPI with £1bn final payout

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Lloyds total PPI payout now amounts to £17 billion.

Lloyds TSB has announced an end to the payments protection insurance scandal with one final payout of £1bn. The scandal has so far cost the banking industry £35bn in payouts.

The extra provision was expected after the deadline for PPI claims was extended to June 2019.

George Culmer, chief financial officer of Lloyds, said on Wednesday that the latest £1bn provision was aimed at covering claims up until the deadline. He added: “So it would be the last big PPI provision that we would expect to take”.

The extra provision for PPI claims comes on top of the £16bn Lloyds has already set aside to tackle PPI mis-selling. It is the bank worst affected by the PPI mis-selling scandal.

The announcement came as the bank announced that pre-tax profits for the three months to the end of September fell 15% to £811m.

Brexit has also been responsible for this downturn in the banks fortunes. Shares in Lloyds have fallen by about a quarter since the referendum, partly due to the bank’s large exposure to any potential downturn in the economy.

 

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