Companies Roundup: Lloyds, Big Yellow Group, and Shawbrook
News and updates on investments in Lloyds (LLOY), Big Yellow Group (BYG), Shawbrook, and Serica Energy (SQZ).
Lloyds Update
Lloyds (LLOY) announced that the Financial Conduct Authority's (FCA) motor financing redress scheme will have an "adverse" impact, exceeding its forecasts by up to £800mn, adding to the previous estimate of £1.15bn in compensation and related costs.
The bank will challenge the FCA on several points in the planned compensation scheme, which Lloyds said did not reflect "the actual loss to the customer".
- The redress plan covers motor finance agreements taken out between April 2007 and November 2024, where commission was payable by the lender to the broker.
- An estimated 14 million people will be eligible for payouts, averaging £700 per claim.
Author's summary: Lloyds faces increased costs due to FCA's redress scheme.
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