Lloyds Provision Warning Signals Short-Term Headwinds

17 days ago

Louise Moon

"So Lloyds firstly, they issued a warning this morning saying they have to set aside more money and that's to compensate customers over the long ongoing long-running car loan saga in the UK. So just to recap that the UK's FCA the regulator said they expect banks or auto lenders relevant auto lenders to take about an 11 billion pound hit and that's to compensate customers. This is less than expected but obviously still hefty and lawyers have responded to that this morning, saying that they have to set aside more cash."

Louise Moon discusses Lloyds issuing a warning to set aside additional funds for a long-running car loan issue, noting that while the hit is less than expected, it remains substantial and could be material. The commentary highlights potential near-term pressure on the stock as further provisioning might be required.

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