Lloyds Banking Group has set aside an extra £350m to cover payment protection insurance (PPI) claims

 
Caitlin Morrison
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Lloyds Bank announced it had set aside more money for PPI claims today (Source: Getty)

Lloyds Banking Group has set aside an extra £350m to cover payment protection insurance (PPI) claims, the lender announced this afternoon.

The bank said the additional provision has been made because the Financial Conduct Authority (FCA) released a revised PPI policy statement on 2 March.

The City watchdog announced a new deadline date for PPI complaints last week: all complaints must now be lodged by 29 August 2019 - several months later than previously hoped.

Lloyds said its additional provision reflected the estimated impact of the policy statement "including the revised arrangements for Plevin cases, which includes a requirement to proactively contact customers who have previously had their complaints defended, and which is likely to increase estimated volumes and redress".

The group said the increased provision will be reflected in the Group's first quarter results to be announced on 27 April 2017 and has no impact on guidance.

Lloyds was recently praised for its return to full health after reporting pre-tax profits had more than doubled in 2016 because PPI charges were slashed.

The bank said it paid out £2.1bn in conduct charges for the year, including additional PPI charges, which were announced last quarter, this is less than half the £4.8bn bill the bank racked up in 2015, which included £4bn for PPI claims.