Lloyds Banking Group PPI Increase

Lloyds Banking Group PPI Increase.

Lloyds Banking Group has said it will be increasing the provision for the mis-selling of Payment Protection Insurance (PPI) by a further £1.8bn. This brings the total set aside for covering the mis-selling to £10bn.

The banking group is expecting underlying profits for 2013 to be £6.2bn, this is nearly double what experts were predicting.

Lloyds has not paid dividends since 2008 and they may begin paying shareholder dividends in the second half of 2014.

The government still owns 32.7% of the banking group, but would like to return the bank to full private ownership before the next election.

Lloyds have also said they will be setting aside £130m for the sale of interest rate hedging products to small and medium sized businesses.