PPI WON’T TERMINATE LLOYDS’ GAIN

Lloyds Banking Group reported soaring profits yesterday despite a hike in the number of PPI claims following a new TV advertising campaign starring an Arnold Schwarzenegger puppet.

The group’s pre-tax profits almost doubled to £1.95billion in the three months to September 30. And it saw 16,000 claims per week, up from an average 9,000, after the launch of the Financial Conduct Authority’s campaign at the end of August. It reminds the public about the August 2019 deadline. “The advertising campaign saw a spike in incoming complaints on PPI but a proportion of those were from people who did not qualify for compensation,” said chief executive Antonio Horta-Osorio. As a result Lloyds said it did not need to add to the £2.3bn it has already set aside for the PPI scandal. Horta-Osorio said its “low risk model” had driven its profit. He said the UK economy was “resilient” helped by record employment, and a rise in interest rates would not hurt consumers.