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UK's Lloyds Q3 profit up, but takes another PPI hit

LONDON (Reuters) - Lloyds Banking Group's <LLOY.L> underlying profit almost doubled in the latest quarter thanks to an improved interest margin and lower costs, although the bank took another big bill to compensate customers for mis-sold insurance products. Lloyds said it took a 750 million pound ($1.2 billion) charge for the mis-selling of payment protection insurance (PPI) in the third quarter, meaning it has now set aside more than 8 billion pounds for the scandal, far more than any other bank.

British banks face £1.3bn bill over new mis-selling scandal

Britain's banks face a bill of £1.3 billion to compensate millions of customers who were mis-sold credit card and identity protection insurance, regulators said Thursday, in the latest blow to the scandal-hit sector. The Financial Conduct Authority (FCA) said in a statement that it had agreed a compensation package with policy provider Card Protection Plan Limited (CPP), as well as 13 banks and credit card issuers. Among these was Barclays, HSBC and Royal Bank of Scotland, as well as Lloyds subsidiary Bank of Scotland.

British banks face £1.3bn bill over new mis-selling scandal

Britain's troubled banking sector faces a bill of up to £1.3 billion to compensate millions of customers who were mis-sold credit card insurance and identity protection policies, regulators said Thursday. Card holders were mis-led into spending about £30-£80 pounds a year on insurance, the watchdog said, spotlighting another case of sharp practice in the British financial sector which has been damaged by a number of scandals in recent years. The cost of the compensation works out at up to the equivalent of $2.0 billion or 1.5 billion euros.

Lloyds most complained-about UK bank

LONDON (Reuters) - Britain's biggest retail bank Lloyds <LLOY.L> received more complaints than any of its rivals in the second half of 2012, data published by the UK's financial regulator showed on Monday. The Financial Conduct Authority said overall complaints across the industry rose by 1 percent to 3.4 million, driven by a further increase in cases relating to the mis-selling of insurance on loans and mortgages.

Lloyds pays 25 staff more than 1 million pounds each

By Matt Scuffham LONDON (Reuters) - Britain's part-nationalised Lloyds Banking Group paid 25 staff more than 1 million pounds each in 2012, a year in which it set aside billions of pounds to compensate customers mis-sold loan insurance. The bank, which is 39 percent owned by the UK taxpayer, said on Monday it paid bonuses worth a total of 365 million pounds in 2012, down 3 percent on the previous year and the lowest of the big four British lenders.

UK banks' insurance mis-selling bill rises again

* January compensation up 22 pct on month before * Payouts had fallen in November and December * Barclays says rate of claims decline lower than expected * Barclays writing to holders of 750,000 policies By Matt Scuffham LONDON, March 8 (Reuters) - British banks paid out more to compensate customers mis-sold loan insurance in January than the month before, reversing a declining trend and pointing to a higher final bill than banks have so far allowed for.

UPDATE 4-Lloyds mis-selling hit cools prospects for UK share sale

* Lloyds' PPI mis-selling bill rises to 6.8 bln stg * CEO 'very confident' taxpayers will get money bank * 2012 pretax profit 2.6 bln stg vs 2.4 bln forecast * UK Treasury says 'still work to be done' at bank * Shares fall as much as 8.6 pct By Matt Scuffham and Steve Slater

UPDATE 2-Ex-Lloyds Bank CEO says most PPI policies not mis-sold

* Daniels says about half of PPI complaints are false * Daniels says most customers buying PPI got good value * Ombudsman data shows Lloyds loses 98 pct of cases * Lloyds has set aside 5.3 bln stg for compensation By Matt Scuffham LONDON, Feb 14 (Reuters) - The former head of Britain's biggest retail bank said the majority of insurance policies taken out on loans and mortgages were not mis-sold, blaming false claims for the rising bill for banks paying compensation.

UPDATE 4-Barclays ducks Qatar questions, takes $1.6 bn mis-selling hit

* Makes 1 bln stg provision for PPI, interest rate swaps * Signals rival UK banks need to set aside more cash * Says cannot comment on Qatar fundraising investigation * "We are shredding" some behaviours of the past -CEO By Steve Slater and Matt Scuffham

Barclays increases mis-selling provisions

LONDON, Feb 5 (Reuters) - Britain's Barclays said on Tuesday it had increased the provisions it needed to cover the mis-selling of interest rate hedging products (IRHP) and payment protection insurance (PPI) schemes. Barclays said following a pilot review, it would now include a provision for IRHP of 850 million pounds ($1.3 billion), which is an increase of 400 million pounds. The provision for the PPI scheme will now reach 2.6 billion pounds, which is an increase of 600 million pounds.
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