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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

Lloyds profits plunge 36% as it feels impact of UK car finance scandal

A Lloyds branch
Lloyds is the UK’s biggest car finance provider through its Black Horse division. Photograph: Nathan Stirk/Getty Images

Lloyds Banking Group profits have been sent plunging by more than a third by the car loans commission scandal, as the lender steels itself for a surge in compensation payouts to drivers.

The high street bank took the 36% hit in the third quarter after putting aside a further £800m to cover the prospective costs of a redress scheme proposed by the Financial Conduct Authority (FCA).

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