Lloyds’ profit below hopes after new mis-selling charge added to compensation bill

#AceFinanceNews – LONDON (Reuters) July.31: Lloyds Banking Group set aside a further 1.4 billion pounds to compensate customers mis-sold loan insurance, pushing its first-half profit below analysts’ forecasts.

The charges take Lloyds’ bill for mis-selling loan insurance to 13.4 billion, more than any other bank, and overshadowed plans by the bank to return excess capital to shareholders through special dividends or share buybacks.

The mis-selling of payment protection insurance (PPI) by banks and other financial services companies is Britain’s most expensive consumer finance scandal and has cost banks and other financial services firms about 28 billion pounds.

It is one of a number of scandals, including the attempted rigging of benchmark interest and foreign exchange rates, which have undermined public trust in Britain’s banks.

Lloyds’ profit below hopes after new mis-selling charge

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