Lloyds Profit Hit by Mis selling

Lloyds Profit Hit by Mis Selling.

Latest figures from Lloyds Banking Group show that profits where hit by PPI mis-selling and Libor fixing settlement costs and resulted in a drop of 50%.

Lloyds posted an underlying profit of £3.8bn but was then hit with costs for “legacy issues” which included PPI mis-selling at £600m and £226m to cover the Libor rate-rigging settlement.

The total bill for PPI mis-selling for Lloyds is now more than £10bn after the bank set aside a further £600m to compensate customers. This week UK and US financial authorities fined the bank £218m for some mis-conduct for some key interest rate rigging in London.

Despite a blow to their profits Lloyds have said they would go ahead and restart its plans to pay dividends to shareholders. Dividend payments have been blocked since 2008 when the bank went into State onwership.

Comment

Much has been written on this website about the size of fines relative to banking profits.  If profits are declining substantially then we hope that this will feed through to better policies adapted by all banks to reflect consumer suitability, needs and objectives rather than profits.