Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
Anna Gowthorpe/PA Wire/Press Association Images
lloyds bank
Lloyds Bank reports losses of £3.5bn for 2011
The banking group was forced to set aside £3.2 billion to cover compensation claims after mis-selling insurance products to customers in 2011.
LLOYDS BANKING GROUP, which is 40 per cent owned by the British state, has reported losses of £3.5 billion (€4.1 billion) for 2011.
The bank says the losses were mainly caused by £3.2 billion (€3.7 billion) being set aside to cover compensation claims following the mis-selling payment protection insurance (PPI) to customers. Last week, the bank announced plans to strip several existing and former senior bankers of more than £1 million (€1.2 million) in bonuses over their roles in the PPI scandal.
Despite the massive losses posted, the group said that it was in a “significantly stronger position than it was 12 months ago”. Setting aside the PPI scandal cost and other one-off charges, the bank made £2.7 billion (€3.2) last year – a 21 per cent rise on the same measure in 2010, the Press Association reports.
Royal Bank of Scotland, which is 83 per cent owned by the taxpayer, was the second-largest mis-seller of PPI in Britain last year – however its losses are half the size of Lloyds’, according to Reuters.
have your say