Britain’s Financial Conduct Authority is poised to fine Lloyds Banking Group Plc more than 100 million pounds ($154 million) over failings in how it handled customer complaints, said a person with knowledge of the matter.
The penalty, which related to how the lender processed complaints over payment-protection insurance, may be announced as soon as Friday, said the person, who asked not to be identified because they weren’t authorized to speak publicly.
Lloyds has been forced set aside more than 12 billion pounds, more than any other British lender, to cover the cost of improperly sold PPI. Grievances related to PPI products make up most bank customers complaints, according to the FCA.
A spokesman for the London-based lender declined to comment. Sky News reported the fine earlier Thursday.
The stock was down 1 percent at 88.07 pence as of 11:39 a.m. in London. The shares are up 16 percent so far this year, outpacing the 6 percent advance in the FTSE 350 Banks index.