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Daily Digit: Lloyds hit by extra £1bln

Thursday, November 01, 2012 - 01:11

Nov.1 - Lloyds Banking Group takes another 1 billion pound ($1.6 billion) hit to compensate UK customers mis-sold loan insurance, taking its charge for the scandal to 5.3 billion pounds and dragging it to a third-quarter loss. Sonia Legg reports.

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£1bln is today's daily digit in Europe. That's how much extra Lloyds bank must pay to compensate UK customers over mis-sold loan insurance. It will take the total charge for the scandal to 5.3 billion pounds. And Manoj Ladwa from TJ Markets says that might not be the end of it. (SOUNDBITE) (English): MANOJ LADWA, TJ MARKETS, SAYING: "Until it's all out in the open and it's all done and dusted they will have to make further provisions. That's gonna weigh on the share price - they've had a good run over the past few weeks or so but you can probably see the high beater stocks that are responsible for a lot of the moves that the FTSE 100 will make coming back down over the next few days or so." Britain's biggest retail bank was bailed out in 2008 and is 40 percent state owned. It says it's on track to cut costs of 10 billion pounds this year and says bad debts will fall to around 6 billion pounds. CEO Antonio Horta-Osorio has been credited with helping turn the bank around But the extra payment protection insurance losses, which work out to $1.6 billion, have dragged it to a third quarter pre-tax loss of 144 million pounds.

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Daily Digit: Lloyds hit by extra £1bln

Thursday, November 01, 2012 - 01:11