One of the giants of the UK banking sector, Lloyds Banking Group, has reported huge results today with profits surging by 99%.
The company, which also sells insurance products under the Lloyds Bank and Scottish Windows brands, saw profits before tax hit £1.3 billion during the first three months of the year – that’s a leap from £652 million during the same period of 2016.
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Its results come despite the fact that the bank has been hit with an additional £350 million provision for payment protection insurance following the Financial Conduct Authority’s decision to revise the claims deadline and extend the time allowed to August, 2019. In addition, Lloyds has also had to set aside a further £100 million for victims hit by the HBOS scandal.
According to reports in the Financial Times, the bank is expected to be privatised during the summer after the government broke even on its £20.3 billion rescue deal that was issued during the financial crisis.
Nevertheless, the bank still revealed plans to cut hundreds of branches earlier this month.
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