Car finance scandal: LLoyds earmarks £1.2bn for potential payouts

Published On Feb 20, 2025, 4:02 AM

Lloyds Banking Group has significantly increased its provisions to cover potential compensation claims related to a car finance mis-selling scandal, now totaling £1.2 billion. The bank's pre-tax profits have fallen to £5.97 billion from £7.5 billion, indicating pressure on its financial performance. Lloyds' CEO emphasized that the car finance issues are not as severe as the previous PPI scandal that cost the bank billions. A Supreme Court ruling in April may impact the extent of compensation owed to customers.