Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

More mis-selling damage for Lloyds

Wednesday, October 28, 2015 - 01:38

Lloyds, Europe's second biggest bank by market value, has reports weaker than expected third-quarter results. The results came as its rival Barclays said it would pay incoming chief executive James ''Jes'' Staley up to 8.24 million pounds. Ciara Lee reports.

▲ Hide Transcript

View Transcript

It's Europe's second biggest bank by market value but it's in the spotlight for the wrong reasons. Weaker than expected third-quarter results saw underlying pre-tax profits fall to 2 billion pounds at Lloyds Banking Group, down from 2.2 billion for the same period last year. Total income declined by 4 percent. Lloyds has been forced to set aside a further 500 million pounds to compensate customers mis-sold loan insurance. The new charge has brought the bank's total PPI bill to nearly 14 billion pounds - more than double that of any other bank. Shares were down over four and a half percent in early trade. But CMC Markets' Jasper Lawler says successes may be being overlooked. (SOUNDBITE) (English) MARKET ANALYST, CMC MARKETS, JASPER LAWLER, SAYING: "I think what is probably not getting enough attention is the rise in pre-tax profits. And just the projected profits for the year stands to be around 8 billion. That's way up on the previous year." Another lender also facing scrutiny - Barclays. It's to pay incoming chief executive James or "Jes" Staley up to 8.2 million pounds a year. Talk of big pay comes at a sensitive time for the bank. It's halfway through a three-year plan to cut 19,000 jobs. . (SOUNDBITE) (English) MARKET ANALYST, CMC MARKETS, JASPER LAWLER, SAYING: "Certainly the pay is large, but he is in charge of a large bank. I think the problem with pay is when it is unjustified. If results deteriorate, yet the size of the pay expands, obviously the incentives are messed up there." And those incentives - or challenges - are considerable. Staley must improve the bank's reputation after a series of scandals, cut its costs and improve its profitability.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

More mis-selling damage for Lloyds

Wednesday, October 28, 2015 - 01:38