Lloyds Banking Group has the largest mis-sold PPI allocation equivalent to £16 billion out of the £40bn estimated total PPI recompense package for the country. Per quarter, the taxpayer-backed banking giant had allocated more than £1 to £2bn. Its full year results for 2016 signify that it had repaid lower amounts for PPI garnering a profit increase of 158% due to lower allocations for mis-sold PPI.
Lloyds shares increased to 69.2p with a 3.7% jump an hour after the opening of the markets. However, Lloyds is still tarnished after having committed breaches over PPI rules — specifically a gaffe in handing overcharged and wrongly-assessed annual statements to more than 200 PPI customers who had repaid the amounts.
Lloyds reported a total income of £17.5 billion. A reduction of 3% in its operating costs had helped boost its profits — which the bank attributes to the £1.6 billion investment it made to “simplify the business.” According to Lloyds Chief Executive Antonio Horta-Osorio, the “simplification and the transformation” of Lloyds’ business is done; the bank will now focus on “delivering the best customer experience” through development of the bank’s financial technology advancements.
Horta-Osorio stressed that the bank is now focused on a “simple, low-risk business model” which he considers to be “the right one.”