Lloyds sets aside £3.2bn for PPI claims
Bailed-out Lloyds Banking Group has made a £3.2bn provision for the cost of mis-selling payment protection insurance (PPI), driving the bank to a loss in Q1.
Lloyds reported a pre-tax loss for the three months to 31 March of £3.47bn, including the PPI provision, down from a £721m profit in Q1 2010.
Chief executive António Horta- Osorio said the PPI write-down was the "sensible, prudent, right thing to do''.
"Drawing a line under this issue'' is in the long-term interests of the bank, he said on a call with reporters today.
Elsewhere, Lloyds said it expects the cost of the government's bank levy for the full year to be about £260m.
Lloyds also used its first quarter results to hit back at calls from the Independent Commission on Banking (ICB) for the bank to sell-off more of its branches.
The bank, which has already been forced by the EU to close 600 high-street branches under the terms of its bail-out package, said further closures were not in the interests of customers.
It said: "We are surprised that the [ICB's] Interim Report is proposing a potential expansion of the divestiture of at least 600 branches which we believe is not in the interests of our customers and may significantly delay meeting the commitments agreed between the UK government and the EU. "
The ICB will publish its final report in September. Lloyds said it will continue to debate the issue of closures with the ICB in the meantime.
More on uncategorised
WATCH: COVER Excellence Awards Afterparty DJ Live Stream w/ Waxwork
Get that Friday feeling!
Planet Insurance - Is anger the cost of a GP report?
The news that the ABI and British Medical Association (BMA) agreement on GP report (GPR) fees has broken down will usher in a period of uncertainty.
Call for UK innovation investment as RGA wins in the US
Lack of innovation investment in the UK insurance market has been highlighted by recognition of RGA's work in the US.
Protection 2012 - Facing the future
Protection business in 2012 and 2013 will be affected by events this year and some fundamental changes to the way customers policies are priced into the next. Richard Verdin explains.
EAPs - The pursuit of happiness
Employee assistance programmes are in the spotlight due to a schizophrenic approach by government. But as Sue Weir points out, they are backed by solid research.