Banks shares plunge after Lloyds' £3.2bn PPI bill

clock

Banking shares led the FTSE 100 lower late morning after Lloyds Banking Group revealed it had set aside £3.2bn to compensate customers for missold payment protection insurance.

The admission by Lloyds - followed by confirmation the bank is pulling out of the judicial review launched by the British Bankers' Association (BBA) to challenge the FSA's ruling on PPI redress - weighed on the banking sector. Shares in Lloyds were down nearly 9% or 5.14p, at 52.88p by 11:20, while peers were also lower as investors grew concerned other banks may follow in Lloyds' footsteps. RBS was off 4.7% or 1.95p, at 39.75p, while Barclays was down 1.3% at 280p, and HSBC shed 0.71% to fall to 647.2p. Earlier this morning Lloyds said in its Q1 update it had excluded £3.2bn from ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on UK

Spring Statement 25: OBR downgrades UK growth forecast to 1% for 2025
UK

Spring Statement 25: OBR downgrades UK growth forecast to 1% for 2025

Growth expected to rise from 2026

Linus Uhlig
clock 26 March 2025 • 2 min read
UK inflation falls to 2.8% in February in boost to chancellor
UK

UK inflation falls to 2.8% in February in boost to chancellor

Spring Forecast takes place today

Linus Uhlig
clock 26 March 2025 • 2 min read
UK businesses to pay four times more for electricity than in 2020
UK

UK businesses to pay four times more for electricity than in 2020

Calls for Covid-style support for energy bills

clock 25 August 2022 • 1 min read