Lloyds’ share price tumbles as PPI compensation bill smashes through £10bn mark
Lloyds’ profits were squeezed by new PPI provisions in the first half of the year, the bank reported yesterday.
Its underlying profits climbed 32 per cent on the year to £3.8bn as bad loans dropped, and bad loan costs dived 58 per cent to £758m.
But another £600m payment protection insurance mis-selling compensation bill – pushing the total through £10bn – hit profits, as did Libor fiddling fines of £226m.
Chief executive Antonio Horta Osorio apologised for the wrongdoing, and promised behaviour was improving. More job and cost cuts could be announced.
Osorio did not rule out branch closures under his upcoming three-year plan – he had previously promised not to reduce total branch numbers until the end of this year.
Lloyds is applying in the second half to pay a dividend.
Its shares fell 2.83 per cent.