Lloyds Banking Group has announced it has set aside a further £460m for Payment Protection Insurance (PPI) compensation.
As the August 2019 deadline slowly approaches for reclaiming PPI, it seems lenders are ensuring they have enough provisions set aside to handle the expected surge of last minute claims that will be coming their way.
Lloyds stated that up until August 2019, it is expecting to receive 13,000 PPI claims each week; the bank has now allocated over £19.2bn to the mis-selling scandal.
The bank also announced that its profits for the first half of 2018 have risen by almost a quarter: “We have delivered another strong and sustainable financial performance with increased statutory profits, higher returns and a strong capital build.”
The bank said the reason more money had been set aside for PPI was “largely driven by a potentially higher total volume of complaints and associated administration costs due to higher reactive complaint volumes received over the past six months and ongoing volatility.”
Since 2000, Lloyds have sold approximately 16 million PPI policies to customers, including those that were not mis-sold and which have been claimed on; 53% of these policies have already been dealt with by the bank.