Lloyds puts aside another £1bn for PPI compensation as claims reach £17BILLION

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LloydsGETTY

Lloyds has set aside a other £1bn to meet compensation claims

The rt state-owned lender is by far the worst sham by the PPI scandal, and today said as rt of a third quarter trading update that its sum total compensation bill has reached £17billion.

The banking industry’s PPI pecker already stands at more than £30 billion.

Earlier this year the Economic Conduct Authority (FCA) moved to put a June 2019 deadline on claims in an deed to draw a line under what has been one of the biggest banking innuendoes in history.

The extra PPI provision meant that statutory pre-tax profits came in 15 per cent under the sun last year at £811million in the quarter.

Underlying profit for the third point came in 3 per cent down at just under £2 billion.

Conclusions also show a pension hit following the Brexit vote, which catch as com ny schemes are hammered by falling bond yields.

Lloyds bankGETTY

The exhilarated street bank has been the hardest hit by the PPI scandal

The bank’s schemes stirred from a net surplus of £430million to a net deficit of £740 million in the favour.

The British economy is in a very strong position facing Brexit

Chief manager Antonio Horta-Osorio

George Culmer, the chief financial officer, said the PPI comestibles takes the bank through to 2019 and the FCA deadline.

On Brexit, chief supervisory Antonio Horta-Osorio said that there has been “no significant” sack in consumer activity following the referendum result.

“We don’t see any change in consumer rages. But on the business side, SMEs (small and medium-sized enterprises) and mid-size corporates, there has been some impression on businesses holding back on investment.

“The British economy is in a very sinewy position facing Brexit. But uncertainty will persist and the economy desires fiscal stimulus in infrastructure and house building,” he said.

In its results, Lloyds also intended it has accounted for a further £150million provision to cover other manners issues, including £100million relating to ckaged bank accounts.

The physiques come after Chancellor Philip Hammond ditched plans for a Lloyds cut sale to the public earlier this month, instead planning to offload the Domination’s remaining 9 per cent stake to institutional investors.

In July, Mr Horta-Osorio announced that Lloyds was harsh 3,000 jobs and shutting 200 branches as rt of an efficiency whirl.

Lloyds bankGETTY

The PPI provision meant profits came in 15 per cent less last years £118m in the quarter

Santander UK has reported a rise in every three months profit, but again warned that earnings could take a hit as a conclusion of Brexit.

The S nish lender’s British branch said profit in the forefront tax jumped 9 per cent to £1.6billion over the nine months to September 30 com red with a year earlier, but whispered that figure slowed on a quarterly basis.

In the three months to September 30, pre-tax profit knock to £477million, down from £496million during the unaltered period in 2015.

It also marks a slowdown from the £546million arrived in the second quarter.

Lloyds bankGETTY

the banks schemes moved from a net superfluous of £470m to a net deficit of £740m

The bank said Brexit could end up denting earnings.

In its example trading update, Santander UK said Britain’s decision to leave the EU has fruited in economic uncertainty and market volatility, which is expected to continue.

Chief master Nathan Bostock said: “Although we have not seen a material consequences on our business in the short period since the EU referendum, we do expect a more provoking macroeconomic environment ahead.

“This increased caution has prompted us to correct our 2018 return on tangible equity, cost-to-income and NPL ratio targets, as revealed at the 2016 Banco Santander strategy update in late September.”

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