Lloyds Adds £800mn to Car Finance Mis-Selling Provision
Lloyds Banking Group has added a further £800mn to its provision for the UK car finance mis-selling scandal, taking its total expected charge to around £1.95bn.
The move follows a Financial Conduct Authority ruling that estimated total industry liabilities at around £11bn.
The regulator’s findings increased the likelihood of having to offer a “higher level of redress” to its affected customers.
- Lloyds, the UK’s biggest car finance provider through its Black Horse division, expects higher customer redress costs.
- The potential impact now lies “at the adverse end of the range of previous expected outcomes”.
Meanwhile, Jefferies says First Brands losses ‘can be absorbed’, and US banks are expected to gain $2.6tn lending boost from deregulation, according to Alvarez & Marsal.
Additionally, ANZ has halted its A$800mn buyback to fund a profitability overhaul.
Author's summary: Lloyds increases car finance mis-selling provision to £1.95bn.