Finance director says claims provision is “adequate”
A £3.2bn provision for PPI claims has sent Lloyd’s Banking group into the red in 2011 with a loss before tax of £3.54bn.
The figure, which was report at first half results and confirmed again in third quarter results, was the result of what Lloyd’s Banking group chief executive António Horta-Osório called a “responsible position” in relation to PPI claims.
“Our review of the compliance with applicable sales standards in respect of PPI continues to make good progress and we continue to believe that the provision of £3.2 billion we took in the first half of 2011 in respect of the anticipated costs of contact and/or redress, including administration expenses, is adequate and that we are appropriately provided. Costs incurred in 2011 against this provision amounted to £1,045 million,” said group finance director Tim Tookey.
Lloyds Banking Group’s UK general insurance division made a profit of £497m profit in 2011, up 21% on the £412m profit it made in 2010.
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