PPI

Shares in Lloyds Banking Group and RBS have fallen today after broker Cazenove warned of the potential impact of further PPI provisioning.

The number of complaints to banks and building societies rose by almost 70% in the first half of the year, mainly related to sales of payment protection insurance (PPI), figures published by the FSA show.

GOSLING'S GROUSE

Banks should use the row over the sail of complex financial instruments to small businesses to overhaul their customer relationships and link pay to customer service, according to Hector Sants.

Nationalised lender Royal Bank of Scotland (RBS) is to repay the final tranche of the £163bn in emergency loans it took from the UK government, and will resume paying dividends on its preference shares.

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).

Claims management firms are being investigated by the Ministry of Justice after a surge in bogus compensation claims filed for consumers who were mis-sold personal protection insurance (PPI).

Eric Daniels, Lloyds' former chief executive, will lose £580,000 or 40% of the 2010 bonus he was due to be awarded in deferred shares.

ON EMERGING MARKETS

Banks added to market woes last week with the UK's major players reporting a raft of losses prompted by PPI claims and the European debt crisis.