Lloyds makes £583m loss with additional £1bn PPI provision

Antonio Horta Osorio 200

Lloyds Banking Group has made a pre-tax loss of £583m in the third quarter of 2012, after setting aside a further £1bn provision for payment protection insurance misselling.

The loss represents an improvement on the £3.9bn loss it made in the same period in 2011, where it set aside £3.2bn for PPI claims.

The provision takes the current Lloyds PPI bill to £5.3bn, while the firm says it does not yet know what the full PPI cost to the bank will be.

Lloyds’ interim accounts show total income fell 16 per cent to £13.8bn, down from £16bn the previous year.

A statement in the results says: “A number of uncertainties remain as to the eventual cost to the group of PPI complaints. By the time of our full year 2012 results announcement on 1 March 2013, we expect to have a higher degree of confidence in forecast trends and the ultimate likely cost of PPI.”

Group chief executive Antonio Harta-Osório (pictured) says: “We remain confident that, by delivering our strategy to be a simple, customer-focused UK retail and commercial bank, we can rebuild the trust of our customers and other stakeholders and can deliver sustainable returns for our shareholders over time.”