Lloyds Banking Group takes PPI hit in first half of 2019

Results for Lloyds Banking Group show that the financial services giant has taken a hit largely due to PPI claims.

The group reported pre-tax profits of £2.9bn for the first half of the year, a seven per cent drop from the same period last year.

As well as £550m in PPI costs, which the group has attributed to a growing number of requests ahead of the August deadline, the bank also saw its profits dip as a result of restructuring as well as ‘volatility’.

Despite the drop, the group has called the results a ‘good’ financial performance, and saw its total costs of £4bn down five per cent on the same period last year.

António Horta-Osório, Lloyds Banking Group chief executive, commented: “The Group has continued to make strong strategic progress during the first half of 2019 and delivered a good financial performance with market leading efficiency and returns.

He added: “The economy has remained resilient although economic uncertainty has led to some softening in business confidence as well as in international economic indicators.

“In this environment our strategy continues to be the right one and we are well placed to support our customers and continue to help Britain prosper.”