Lloyds Faces Provision Risks Amid FCA Motor Finance Saga

17 days ago

Chloe Malay

"Lloyds also has responded to the FCA's long-running motor finance saga just briefly on their share price. It put out a statement today saying that it will have to set aside additional provision to compensate customers who are missold those car loans. It did not give a figure but said the provision might be material. It's already set aside 1.15 billion pounds and probably have to set aside another 500 million, and that is driving down the shares."

The commentary on Lloyds reveals that the bank is facing significant additional provisioning due to mis-sold car loans in the wake of a prolonged FCA investigation. This potential material charge is negatively impacting the stock, reflecting heightened investor concerns over regulatory and credit risks.