Lloyds Banking Group sets aside extra £350 million for PPI claims

Lloyds Banking Group is setting aside more funds for PPI claims. Credit: Andrew Matthews/PA

Lloyds Banking Group has set aside an extra £350 million to cover payment protection insurance (PPI) claims, the bank said.

The announcement of the additional funds comes after the Financial Conduct Authority laid down a deadline of the end of August 2019 for making new PPI claims.

In a statement, the bank said: "The additional provision has been taken to reflect the estimated impact of the policy statement including the revised arrangements for Plevin cases, which includes a requirement to proactively contact customers who have previously had their complaints defended, and which is likely to increase estimated volumes and redress."

The extra provision will be accounted for in its first quarter results, Lloyds added.