Lloyds Takes Fresh PPI Charge as Net Profit Stays Flat
October 28 2015 - 4:13AM
Dow Jones News
By Margot Patrick
LONDON-- Lloyds Banking Group PLC on Wednesday took a fresh
GBP500 million ($756 million) charge to cover payment protection
insurance claims as it reported a flat third-quarter net
profit.
The British bank said net profit was GBP690 million, down
slightly from GBP693 million a year earlier. Underlying profit,
which strips out certain costs and provisions and excludes the TSB
unit it floated last year, was down 3% at GBP1.97 billion from
GBP2.04 billion.
Chief Executive António Horta-Osório on Wednesday said the group
has had a good year so far, with underlying profit rising 6% in the
first nine months compared with the year earlier. He said the drop
in underlying profit in the third quarter was the result of
lower-than-expected revenue in the lender's commercial and
insurance business.
The new provision to compensate customers who were wrongfully
sold insurance on loans and credit cards was largely expected, and
brings Lloyds's total bill over PPI to just under GBP14
billion.
The U.K. government owns just under 11% of the bank after a
series of bailouts in the financial crisis. The stake, down from
43% at its peak, has been reduced steadily through share sales in
the past two years.
More than 250,000 people have registered interest in buying
Lloyds stock in a planned retail share sale next spring, Chancellor
George Osborne said earlier this month.
Write to Margot Patrick at margot.patrick@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 28, 2015 03:58 ET (07:58 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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