Lloyds pre-tax profits rise 23% as bank looks to end of PPI complaints

Lloyds Bank’s pre-tax profits rose 23% in the last year, despite pressure from PPI compensation claims according to the Financial Times.

Pre-tax profits were £1.6bn, up 23% on 2017’s profits of £1.3bn. Last year the bank paid out £450m to address historic PPI claims.

Lloyds recently announced that it would set aside a further £90m for PPI claims. The mis-selling of the Payment Protection Insurance policies is by a long shot the greatest mis-selling scandal in UK banking history.

The bank has paid more than £18bn to settle PPI claims since 2011. Clydesdale and Yorkshire Banking Group is setting aside a similar sum, saying it expects the “level of complaints to remain at an elevated level for a period of time.”

The final deadline for making PPI complaints is 29 August 2019. Lloyds is making plans for its final emergence from the mis-selling scandal.

Chief executive Antonio Horta-Osorio said: “We have again delivered strong financial performance with increased profits and returns, a significantly reduced gap between underlying and statutory profit and a strong increase in capital.”

Lloyds recently announced the latest in a series of cost-cutting measures. So far in 2018 more than 2,000 jobs have been lost at the bank. Last week Lloyds announced the closure of 49 branch closures, with the loss of 1,230 staff.