Lloyds puts aside a further £700m for compensation over car finance scandal
by Kalyeena Makortoff Banking correspondent from World news | The Guardian on (#6VDA3)
Profits hit as total held back for payouts rises to almost 1.2bn amid uncertainty over final financial impact
Lloyds Banking Group has been forced to put aside a further 700m for potential compensation over the ballooning car loan commission scandal, in a move that knocked its annual profits by 20%.
The latest provision marks a notable jump in the bank's estimates for the potential cost of the scandal and brings the sum it will hold back for payouts to almost 1.2bn. RBC Capital has estimated the bank could ultimately be on the hook for up to 4.6bn.
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