Calderdale employment giant Lloyds put millions aside for PPI pay-outs

Lloyds premises on Trinity Road, Halifax.
Lloyds premises on Trinity Road, Halifax.

Lloyds could set aside millions more to address payment protection insurance (PPI) misselling claims this week when it reports results alongside banking peers Barclays and RBS.

The banking firm employs 6,000 people in Calderdale and have a vast corporate centre on Trinity Road in Halifax.

Analysts are waiting to see whether UK banks report higher costs linked to compensation for PPI after a new ad push by the Financial Conduct Authority was launched ahead of next year’s claims cut-off date.

“In an ironic unhelpful twist of fate the bank-funded Arnold Schwarzenegger-esque advertising campaign for the August 29, 2019 PPI claims deadline appears to have brought refund request volumes back,” UBS analysts warned.

Lloyds Banking Group is expected to top up its PPI provisions by as much as £410m in the second quarter alone, according to forecasts by Morgan Stanley.

It will add to the £90m set aside for PPI claims cost in the first three months of the financial year.