Lloyds suspends share buy-back due to PPI requests spike

Lloyds Banking Group has confirmed it will suspend its share buy-back programme for the rest of 2019 following an increase in PPI queries.

The banking giant has stated that its initial provision of approximately £1.1bn was based on 190,000 weekly PPI information requests.

In the weeks up to the August 29 PPI deadline the bank saw a spike in queries, ranging from 600,000 to 800,000 requests a week.

As a result, Lloyds has reviewed its provision and announced that it will need between £1.2bn and £1.8 bn to cover claims and administrative costs.

In a statement issued this morning, the group explained: “[Due to] the uncertainty around the final outcome for PPI, the board has decided to suspend the remainder of the 2019 buyback programme, with c.£600 mn of the up to £1.75 bn programme expected to be unused at mid-September.

“In line with normal practice, the board will give consideration to the distribution of surplus capital at the year end and continues to target a progressive and sustainable ordinary dividend.”