Lloyds suffers £439m pre-tax loss in first half of 2012
Lloyds Banking Group recorded a pre-tax loss of £439m in the first half of the year as the bank was force to make an extra £1bn available for PPI claims.
Lloyds says it has seen a sharp increase in the volume of PPI complaints in 2012. As a result, it set aside an extra £700m for PPI misselling in the second quarter. This followed a £375m increase in PPI provision in the first quarter.
This means the PPI scandal has now cost Lloyds over £4.2bn.
Chief executive Antonio Horta-Osorio says: “To realise our full potential, we must deal with various issues from the past that continue to affect us.
“The mandated branch divestment, Verde, is a legacy issue and I’m pleased that we have come to an agreement with The Co-operative Group that will establish them as an effective competitor in the UK banking market.
“The deal provides certainty for our shareholders and I also believe that the Co-operative will be a good home for our customers and colleagues.
“Missold Payment Protection Insurance policies are an industry legacy issue but by redressing those affected quickly we continue to do the right thing for our customers. We will tackle issues from the past in a way that will, in the long run, allow us to earn back customer trust and confidence.”
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