Lloyds makes extra £375m PPI claims provision

Lloyds Banking Group has set aside an extra £375m to cater for a new raft of compensation claims related to the mis-selling of payment protection insurance (PPI).

The announcement comes as the bank, which had announced a PPI claims provision of some £3.2bn last year, reported falling profits for the first three months of the year. Pre-tax profit for Q1 came in at £288m, down 9% from the same period last year, the bank said on Tuesday.. Lloyds, which is 40%-owned by the government, said the extra PPI provisions were down to "the increase in the volume of complaints". Barclays last week made an extra £300m provision to meet PPI claims, on top of its initial £1bn provision. Broker Citigroup has warned both Lloyds and RBS, which reports its Q...