Lloyds Increases PPI Compensation Pot

Lloyds Banking Group Plc, (LLOY) has confirmed it has increased the amount of money in its compensation scheme for victims of the personal protection insurance (PPI) mis-selling scandal.

The bank revealed that it is set to leave aside a further £750 million to pay back people who were mis-sold PPI on products such as loans.

Despite this, Lloyds announced that its profits for the nine months to the end of September were £1.69 billion. The government retains around a third of shares in Lloyds Banking Group after bailing out the company during the recession, although it recently sold £3 billion worth of stocks in the firm.

UK banks have reserved a total of £16 billion to compensate customers affected by the PPI scandal and Lloyds has set aside more cash than any other company.

On the back of the news of the further PPI payouts, the share price of Lloyds Banking Group is down this morning (October 29th).

At 08:25 GMT, its stocks were trading almost four per cent down on the start of the day.

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