PPI claims take bite out of Lloyds’ capital

UK lender Lloyds set aside £550 million ($671 million) to cover compensation claims for customers mis-sold payment protection insurance (PPI) in the second quarter, which took a 28 basis point bite out of its Common Equity Tier 1 capital ratio.

Total provisions taken for the first six months of the year hit £650 million, pushed higher over the three months to June because of a “significant increase in information requests” ahead of the PPI claims deadline of August 29. The overall cash pile