The scandal will now have cost the company approximately £5.3 billion.
Lloyds Banking Group has just released their latest insurance news statement regarding the mis-sold loan policy compensation, which now involves an additional $1.6 billion (£1 billion), bringing the total amount of these payouts up to £5.3 billion, which has yanked its numbers downwards to result in a third quarter loss.
However, the largest retail bank in the U.K. is still optimistic and is encouraging customers to remain that way.
Lloyds has released a positive message regarding the decreasing losses from loans that have gone bad, and has said that it is ahead of target in its program to cut costs. Therefore, it is assuring customers that this latest insurance news isn’t as painful as it may sound.
The company has already reduced its loan book and has slashed its costs while it has tightened the bad debts issue from which it had been suffering. This was all a part of a recovery plan that was created by Chief Executive Antonio Horta-Osorio in order to send the bank in the right direction after it had been bailed out in 2008, giving the United Kingdom a massive 40 percent stake.
As is the case with many other companies in the U.K., its insurance news involves losses from the scandal.
Though the recovery attempts that have been made by the bank have certainly not benefited from the multi billion dollars in losses that it has faced as a result of the wrongly sold loan and mortgage coverage, it is assuring customers that it remains strong, positive, and on the right track.
The insurance news regarding this scandal broke out when many loan and mortgage customers discovered that they either had coverage that they had not requested or that they had already refused, or that they were denied from making claims when they tried to benefit from their coverage.
The bank has maintained that though this insurance news is not positive, it is still on track for cutting £10 billion in costs this year, which is about £1 billion less than 2010, and brings them to about 2 years ahead of their target.