Effects of PPI Cliam’s on Lloyd Bank Shareholder’s
For the first quarter of the year, Lloyds recently revealed a decent underlying performance, but was not spared by the pressure from the investors over the PPI (Payment Protection Insurance) saga.
Although the Lloyds chief executive Antonio Horta-Osorio confirms a payout of £1.8bn already out of the total £3.6bn set aside for PPI compensation, the shareholders remain frustrated eager to know when the taxpayer-backed Lloyds is expected to rebuild its crushed share price.
Getting back up to acceptable profitability levels would enable the government to sell its 40 per cent stake Mr Horto-Osario mentions that though the initial plan for this is 3-5 years “The good news is that we are now 12 months further on.”
Osorio also makes the resilient statement that “We are making progress with our strategic plan within a very difficult economic and financial environment”, the Chairman Sir Win Bischoff backs him saying the group is committed to delivering “strong, stable and sustainable returns for shareholders over time” at the share holders conference on Thursday.
Mr Horta-Osario also made reference to to PPI in his introductory speech, stating: “We are focusing the group culture on producing value for money. We must move away from the industry culture of making money from products that ultimately customers do not need.”
But there are indications that the drive for profits could reflect on bank employees. A recent survey by the Unite Union told the board that 85 % of staff suffered stress, 77% were experiencing anxiety and depression whilst at work, while 74% felt that unrealistic targets were the main factor for this stress.
While employee grievances are raising and profits falling for the already dampened bank’s reputation the only good news seems to be for miss-sold PPI customers!
