Lloyds Warns of Additional £800 Million in Motor Provisions (1)

Lloyds Banking Group Plcsaid it intends to set aside an additional provision of £800 million ($1.07 billion) to compensate customers who were missold car loans after the UK’s finance watchdog kickstarted a redress program.

Having already taken a provision of £1.15 billion, the British lender said in a filing on Monday that the total £1.95 billion, including both redress and operational costs, represents the group’s “best estimate” of the potential impact of the motor finance issue.

“This reflects the increased likelihood of a higher number of historical cases,” including those dating back to 2007 and also the “likelihood ...