* Says would benefit customers, banks
* CEO says 90 mln stg set aside for swaps compensation
By Matt Scuffham and Steve Slater
LONDON, Feb 4 Lloyds Banking Group is
likely to pay its staff less in bonuses for 2012 than the year
before and will "undoubtedly" pay out less than the other major
British banks, its chairman said on Wednesday.
Chairman Win Bischoff said Lloyds had not finalised its
bonus pool for last year, but when quizzed by UK lawmakers he
said the bank had an idea what the range of incentive
compensation might be.
"It will be the lowest, undoubtedly, of any bank. It is
likely to be lower," he said.
Bischoff said he was "very conscious" that Lloyds was 40
percent owned by the taxpayer so it was aware of public
sentiment on bonuses.
He said once the bonus pool was set, the board would
determine how much to award Chief Executive Antonio
Horta-Osorio said he had not discussed his bonus in advance
with the board. The CEOs of Barclays and RBS have both said they
do not want to be considered for any bonus for 2012.
Horta-Osorio on Monday backed a time limit for customers to
claim compensation for mis-sold insurance, which is costing
British banks billions of pounds.
The British Bankers Association, a lobby group, wants an
April 2014 deadline for claims arising from payment protection
insurance (PPI) sold with loans and mortgages.
Horta-Osorio told a parliamentary commission on banking
standards that a cut-off would benefit customers and banks, and
remove the huge cost of investigating bogus complaints from
claims management companies.
UK banks have set aside 12 billion pounds ($19 billion) to
deal with the worst mis-selling scandal in British history, and
industry sources have said the bill could double.
Horta-Osorio also said the bank had set aside 90 million
pounds to compensate small firms that were mis-sold complex
interest rate hedging and indicated the sum would rise.
He said Lloyds was examining more swaps transactions for
potential mis-selling following a report from the UK's financial
Britain's banks face another round of compensation claims
that could total billions of pounds after the Financial Services
Authority found the products had been widely mis-sold.
"The new scope of the review is significantly wider than it
was in December, Horta-Osorio said, adding that Lloyds will
update the market on the issue at the time of its full year
results on March 1.