Lloyds’ PPI provision climbs beyond £8bn

It has been reported that Lloyds Banking Group has made a further £750m provision for expected claims against sales of payment protection insurance (PPI), which takes its total commitment beyond £8bn.

According to reports, the group stated that the extra money was being made available due to a lower than expected drop in claims as well as higher than projected uphold rates and costs.

It is being said that from the £8bn, £1.7bn has been set aside for PPI compensation.

Nevertheless, the additional £750m charge did not prevent Lloyds from turning a loss of £607m in the first nine months of 2012 into pre-tax profits amounting to £1.69bn for the same period this year.

It is said that the income was boosted by sales of shares in wealth manager St James’s Place in two tranches earlier this year.