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

Lloyds puts aside a further £700m for compensation over car finance scandal

Lloyds bank branch
Lloyds’ pre-tax profits for the year to December are down 20% to just under £6bn, compared with £7.5bn last year. Photograph: Isabel Infantes/AFP/Getty Images

Lloyds Banking Group has been forced to put aside a further £700m for potential compensation over the ballooning car loan commission scandal, in a move that knocked its annual profits by 20%.

The latest provision brings the sum it will hold back for payouts to almost £1.2bn. RBC Capital has estimated that the bank could ultimately be on the hook for up to £4.6bn.

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