Oh dear

Profits at Lloyds Bank plunged in the last three months as it became the latest bank to be dragged down by a wave of last-minute compensation claims by customers affected by the payment protection insurance (PPI) scandal.

The bank, which has already set aside more than £20bn for PPI payouts, was hit by a further £1.8bn provision in its latest accounts released on Thursday.

Pre-tax profits for the third quarter were just £50m on an underlying basis, down 97pc on the £1.8bn profit reported a year earlier.


Profits on an underlying basis were £1.8 billion and a bit, leaving the £50 million or whatever after the taking of the PPI hit.


6 thoughts on “Oh dear”

  1. @ Rob
    Banks have Revenue, which has replaced “Turnover” in the top line under IFRS.
    Under the traditional definition of “turnover” banks had very little

  2. Bloke in North Dorset

    Revenue, turnover or any other measure is just wibble. Banks have money, lots of money, and it belongs, righteously, to the left.

  3. The PPI scandal (should I assume it’s mainly a rip-off by the public from the banks’ shareholders?): how much has that acted as a growth-promoter in the economy? After all, it must be partly a transfer from dividends that would have been held for the future in pension funds to spend-it-now handouts.

  4. @ dearieme
    It’s mainly a rip-off by Claims Management Companies who pocket 30% of the loot just for sending a computer-produced raft of letters to every bank where the “mark” had an account and a standard form to any bank that admits to having sold a PPI policy.
    It has certainly boosted consumer spending by tens of £billions over the past decade, thereby reducing unemployment among car salemen etc

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