London, Oct 31 (AFP/APP): Britain’s Lloyds Banking Group sank into the red in the third quarter after setting aside more cash to compensate customers mis-sold the controversial insurance product PPI, it said Thursday.
The UK high-street giant, which received a vast bailout during the global financial crisis, said in a results statement that it made a loss after taxation of £238 million ($307 million, 276 million euros) in the three months to September.
That contrasted with net profit of £1.4 billion in the same period a year earlier.
The lender took another £1.8 billion hit to cover last-minute claims regarding a UK-wide practise of mis-selling payment protection insurance (PPI) over a number of years.
Chief Executive Antonio Horta-Osorio said he was “disappointed” that the performance was “significantly impacted” by the extra PPI charge.
However, he noted that it was “driven by an unprecedented level of PPI information requests received in August”.
Most major British banks faced a rush of in compensation claims ahead of the deadline to seek compensation two months ago.
Lloyds was by far the worst affected British bank in the crisis.