Lloyds Banking Group PLC, the largest mortgage lender in Britain has managed to set aside $1.4 billion as the insurance shares fell which made their insurance transactions become improperly sold.
LLOY representatives have made an official statement today claiming $1.4 Billion PPI Charge due to improperly sold payment-protection insurance. No other British lender has ever registered a bigger bill than Lloyds Banking Group PLC from this perspective.
The issues that have led to the $1.4 Billion PPI Charge are numerous and interesting and at the same time complex to interpret and comprehend. Antonio Horta-Osorio, the chief executive officer at LLOY has acknowledged the fact that his way of getting the lender back to full private ownership has suffered from misconduct charges. An example at this stage is the impressive charge for benchmark interest rates that came up to 226 million pounds.
The negative effects of these charges have not delayed in bringing up job cuts and branch closings for discussion among LLOY representatives. There have been announced thousands of job cuts and hundreds of branch closings meant to help the company by minimizing risks and cutting costs as much as possible. These measures also come as a result of a serious shift to online customer services registered in this financial department.
Ian Gordon, an important financial analyst at Investec Ltd. London has declared that the $1.4 billion PPI charge has hit the group hard as it has been much more than anyone could have expected thus making serious control measures an important requirement meant to re-establish the balance. On the other hand, Gordon also expressed his optimism in terms of future changes due to the strength of the capital build which makes the underlying picture better than it seems when you first hear the news about the impressive PPI charge.
The government sold 4.2 billion pound stakes in Lloyds back in March which made it remain with only a 25% ownership of the bank. On the other hand, the government still has 85% ownership of the Royal Bank of Scotland Group PLC.