Missold loan insurance costs Lloyds another 1 bil. pounds, drags down Q3
November 2, 2012, 12:38 pm TWN
LONDON -- Lloyds Banking Group took another 1-billion-pound (US$1.6 billion) hit to compensate customers missold loan insurance, taking its charge for the scandal to 5.3 billion pounds and dragging it to a third-quarter loss.
But Britain's biggest retail bank on Thursday provided a more upbeat message on falling losses from loans that turn sour and said its cost-cutting program was ahead of target.
Lloyds has reduced its loan book, cut costs and reined in bad debts as part of a recovery plan devised by Chief Executive Antonio Horta-Osorio to turn around the bank, which was bailed out in 2008 leaving Britain with a 40-percent stake.