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Lloyds half year profits hit by PPI mis-selling charges | Lloyds half year profits hit by PPI mis-selling charges |
(about 1 hour later) | |
Profit at Lloyds Banking Group has fallen by more than 50% in the first six months of the year compared with the same period in 2013. | |
Pre-tax profit fell to £863m after a £1.1bn charge for "legacy issues". | Pre-tax profit fell to £863m after a £1.1bn charge for "legacy issues". |
These included £600m set aside for mis-sold Payment Protection Insurance and £226m to cover a Libor rate-rigging settlement. | |
However, Lloyds said it would go ahead with plans to restart dividend payments to shareholders. | |
"We substantially improved our underlying financial performance and delivered a statutory profit, despite further charges for legacy issues,' said Antonio Horta-Osorio, chief executive of Lloyds Banking Group. | "We substantially improved our underlying financial performance and delivered a statutory profit, despite further charges for legacy issues,' said Antonio Horta-Osorio, chief executive of Lloyds Banking Group. |
The group made an underlying profit of £3.8bn. However, it was hit by charges relating to "legacy issues", including PPI mis-selling and a fine for rate manipulation. | |
The bank's total bill for mis-sold PPI now stands at more than £10bn, after it set aside an extra £600m to compensate customers. | |
Lloyd's also set aside £226m to cover a fine for rate-rigging. | |
On Monday, US and UK financial authorities fined Lloyds £218m for "serious misconduct" over some of the key interest rates set in London. | |
Regulators found that Lloyds rigged rates including the London interbank offered rate (Libor) for yen and sterling, and tried to manipulate the rate for yen, sterling and the US dollar. | |
Lloyds Group is part-owned by the government, which holds a 24.9% stake. | |
Its TSB business, which was floated on the stock market in June, saw underlying profits fall about 17% to £78.6m. | |
It attributed the fall to its no longer being able to benefit from the economies of scale that had been open to it as part of a larger group. |