Lloyds, led by boss Charlie Nunn (pictured), has earmarked an extra £700m for compensation on top of a previously announced £450m.
Lloyds Banking Group has set aside £1.2 billion to address a car finance misselling scandal, referred to as "PPI on wheels," which has led to a 20% drop in profits. Analysts warn the banking sector could face billions in costs, drawing comparisons to the £50 billion PPI scandal a decade ago. Lloyds, which owns car-loan business Black Horse, has allocated an additional £700 million for compensation, bringing the total to £1.2 billion. Other banks, including Santander and Barclays, have also set aside funds for potential claims. The case is expected to be decided in a crucial Supreme Court hearing in April. Despite the financial impact, Lloyds increased its dividend by 15% and announced a £1.7 billion share buyback, signaling confidence in its strategy.
