Lloyds puts aside a further £700m for compensation over car finance scandal
Source: The Guardian | Published: February 20, 2025, 8:09 a.m.
Profits hit as total held back for payouts rises to almost £1.2bn amid uncertainty over final financial impact
Lloyds Banking Group has been forced to put aside a further £700m for potential compensation over the ballooning car loan commission scandal, in a move that knocked its annual profits by 20%.
The latest provision marks a notable jump in the bank’s estimates for the potential cost of the scandal and brings the sum it will hold back for payouts to almost £1.2bn. RBC Capital has estimated the bank could ultimately be on the hook for up to £4.6bn.
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