Lloyds Takes Further $426 Million Provision for U.K. PPI ClaimsBy
Lloyds Banking Group Plc will take a 350 million-pound ($426 million) provision for improperly sold loan insurance in the first quarter after the U.K. regulator extended a deadline for complaints.
The charge is in response to the Financial Conduct Authority’s policy statement on payment protection insurance issued on March 2, and won’t impact the bank’s earnings guidance, the London-based company said in a statement on Friday.
The provision adds to about 17 billion pounds already set aside by Britain’s biggest mortgage lender for the industry’s most costly scandal since the financial crisis.
The FCA’s policy statement extends the time limit for customers to complain by two months, to the end of August 2019, Lloyds said. The bank is scheduled to report first-quarter earnings on April 27.