Lloyds falls to £570m loss as PPI costs bite

City A.M. Reporter

PROVISIONS for mis-sold payment protection insurance (PPI) dragged Lloyds to a pre-tax loss of £570m last year, it said this morning.

It compares to a loss of £3.5bn in 2011.
The bank put aside an extra £1.5bn as redress for the mis-sold loan insurance in the fourth quarter, taking its total bill to £6.8bn. It set aside £400m more for compensation for interest rate swap products.
Lloyds, which is 41 per cent owned the government, added that it would award chief executive Antonio Horta-Osario a deferred share award of £1.5bn.
The award, deferred until 2018, will only be paid out if the share price stayed above 73.6p for a period of time or t he government sold at least a third of its holding for more than 61 pence per share.
It said underlying profit rose to £2.6bn in 2012 from £638m a year earlier.