Lloyds Banking Group (LSE:LLOY) has increased its provision for motor finance redress by £800 million, bringing the total to £1.95 billion. The move follows the Financial Conduct Authority’s (FCA) proposed industry-wide compensation scheme after a Supreme Court ruling, which could make more historical cases eligible for redress.
The bank has voiced concerns over the FCA’s proposed methodology, arguing that it may not accurately reflect actual customer losses or align with recent legal interpretations. The outcome of the FCA’s consultation could shift depending on further legal proceedings and stakeholder representations.
While Lloyds continues to face profitability and cash flow pressures, its outlook is supported by strong technical indicators and a fair valuation. Bullish momentum and a solid dividend yield remain key positives, even as the bank navigates these financial headwinds.
About Lloyds Banking Group
Lloyds Banking Group PLC is one of the UK’s largest financial services institutions, offering personal and commercial banking, insurance, and wealth management solutions. The group has a strong presence across the UK market, serving millions of retail and business customers.
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