RE: Lloyds earnings call transcript30 Oct 2018 10:59
No further Ppi expected
Question 8, Guy Stebbings, EXANE BNP
My second question was on PPI if you can give us an update on what you are seeing for PPI claims given the comments regarding the pick-up in volumes and the latest campaign and with more being done direct rather than through claims management companies? And what impact the fee cap is having there?
Answer: George Culmer
Okay so PPI, the facts. First up we are at 13,000, we have obviously made no addition to the provision this quarter. As you know I think we came in around about I think it was 11,000 and then we moved to 12,000 and then up to 13,000. Most recent experience in terms of the reactives is that we’ve probably seen around about 11-12,000. So in side our expectations in terms of weekly run-rate. That has moved into another FCA campaign which is a few weeks through. And again as its predecessors what you get is very immediate reaction to that. So the sort of 11-12,000 which is a sort of undisturbed level we have seen, goes up to about a 14,000 type number. It then comes down again pretty quickly. So it is incredibly correlated with the ad spend. So it shoots up to the sort of 13-14,000 but then it comes back. The fee capping, yet to see strong impact in terms of, we are seeing a bit of a mix in terms of additional direct complaints coming through. But we are yet to see a massive discernible impact from the fee cap in things.There is no doubt about that. But we will still wait and see. But as I said the good news is the time bar is in place, we have got about a billion and a half unspent in terms of the provision and that will sort of cover me, expect it not just to cover me, not just the 11 months through to the end of August, which will get some tail in terms in dealing with those complaints so probably a couple of months thereafter. So let’s assume it is 13 months, so that is about £120 million spend. The first few months of this year were slightly higher than that, round about £150 billion and that was because I was doing some Plevin outbound mailings and things like that so I expect it to come down to that. So at the moment as I say, it is inside, we have seen the pick-up but that was to be expected. The FCA have actually combined two, there were going to be four marketing and we have now had three I think. So there is one left to go prior to the end. So that is where we expect it to be.
https://www.lloydsbankinggroup.com/globalassets/documents/investors/2018/2018_lbg_q3_ims_transcript.pdf
♞ 💰 💰 💰 📈 ❤️
A1
Sign In
Follow the stocks
