Drop In PPI Claims Sees Lloyds Profits Increase

Posted on February 28, 2017 by Canary Claims lloyds ppi claims

For the first time in over ten years, Lloyds banking group has achieved a profit. This has come due to the bank having to deal with less ppi claims.

lloyds ppi claimsFigures released to the press showed that Lloyds saw it’s pre-tax profits increase by over one-hundred and fifty percent, reaching over £4 billion pounds, a level that was last achieved in 2006 – two years before the financial meltdown of 2008.

Lloyds Expecting Less People To Be Claiming PPI

Lloyds also revealed that it had decreased it’s provisions for ppi – which is the amount of money it has set aside to compensate people for the mis-selling of PPI by the bank, from £4 billion to £1 billion.

The bbc website had more to report on the data released by the bank.

From bbc.co.uk

The UK government’s stake in Lloyds has now fallen below 5% and it has said it wants to return the bank to full private ownership this year.

The government spent £20.3bn to acquire a 43% stake in Lloyds at the height of the financial crisis.

It has returned more than £18.5bn to the taxpayer since 2009.

However, underlying profits for 2016 fell to £7.9bn, down from £8.1bn.

Total income for the group also edged down to £17.5bn compared with £17.6bn the previous year.

In addition to the £1bn set aside in the third quarter to cover PPI claims, Lloyds also made a provision of a further £1.1bn for other “conduct” issues.

The company has increased its dividend by 13% and will also pay a special dividend.