Taxpayers have recovered all of the £20.3 billion bailout injected into Lloyds to prevent it from collapsing during the financial crisis.Read the full story ›
The taxpayer's stake in Lloyds banking group has been cut to below 2% as the Government continues to sell its shareholding to the lender.Read the full story ›
All proceeds from the sale of shares are used to reduce the national debt.Read the full story ›
The extra funds are to cover payment protection insurance claims, the bank said.Read the full story ›
The latest share reduction is hailed a 'milestone', nine years after a £20.3bn bailout bought taxpayers a 43% stake in the crisis-hit bank.Read the full story ›
Lloyds Banking Group is cutting 3,000 jobs and shutting 200 branches as the lender braces for a cut in interest rates, it has announced.Read the full story ›
Lloyds Banking Group has posted a 6% fall in underlying profits to £2.1 billion for the first quarter of the year, down from £2.2 billion a year earlier.
It hailed a "robust" performance in the first three months of 2016.
It said that, excluding the TSB business, which it sold last year, profits were "stable" on a year earlier.
The lender has escaped the hefty profits hit suffered by its investment banking rivals, with Barclays posting a 25% fall in first-quarter profits on Wednesday.
Responding to today's record £117 million fine over its handling of PPI complaints, Lloyds Banking Group said that it takes responsibility for its mistakes and is looking to rebuild trust with customers.
We are trying to get it right for our customers and to rebuild trust. But we do not get everything right.
That means when we make mistakes, we will take responsibility for them.
This is what we have done here.
The group said it has launched a programme to re-review or automatically uphold around 1.2 million PPI complaints.
It has also set aside £710 million to cover any redress due to affected customers, who are being contacted directly.
The group said that following its review, 90% of customers received payment and the remainder will be completed by the end of June.
The £117 million fine handed out to Lloyds Banking Group today easily breaks the record for PPI penalties - the previous largest sum being a £21 million fine imposed on Clydesdale Bank two months ago.
The sum is also the largest ever retail banking penalty imposed by the Financial Conduct Authority.
"As a result of Lloyds' misconduct, a significant number of customer complaints were unfairly rejected," the FCA said.
These are the failings that led to the state-backed bank's record fine:
- Lloyds Banking Group workers rejected customers’ complaints about missold PPI, citing a "robust" sales process, when in fact, Lloyds was aware of "significant" failures in the sales process and mis-selling
- Some customers whose PPI complaints had been rejected were told that their grievance had been "fully investigated" with "appropriate weight and balanced consideration [given] to all available evidence," when this was not the case
- When Lloyds assessed a complaint, the customer's account of what had actually happened at the time of the sale was not always considered in a balanced way
- Poor contact with customers about their complaint meant that some were not given an opportunity to provide evidence needed to reach a fair outcome
State-backed Lloyds Banking Group has reached a £117 million settlement with the Financial Conduct Authority over the way it handled complaints about payment protection insurance (PPI).
Lloyds apologised to customers affected and said £2.65 million worth of bonuses was being withheld from executives.
The group, which remains nearly 19% owned by the taxpayer after being rescued during the financial crisis, has already set aside £12 billion to cover the cost of compensating those mis-sold PPI.
The penalty to the FCA relates to the handling of complaints over the scandal during the period of March 2012 to May 2013.