PPI Claims Effect on Shareholders of Lloyds Bank

June 29, 2012 - PRLog -- Lloyds group of bank has done good business in first quarter of the year. It has made huge profits. But this company has burden of compensation from those who have invested for payment protection insurance(http://www.ppiclaims.uk.com/) plan. Chief executive Antonio Horta- Osorio has already set aside £1.8 billion for refunds of consumers. But total repayments are £3.6 billion that is difficult to meet. Shareholders of the company are frustrated and are showing their angers. However, it is expected that company will rebuild its crushed share price.

If company wants to get back an acceptable profitable level then it will need to sell its 40 percent stake to government. Chief executive has also mentioned that they have 12 months further to go in order to correct all these things like mis sold ppi(http://www.ppiclaims.uk.com/mis-sold-ppi/). Bank is initially planning for 3-5 years.

However, officials of company have accepted that they are making profit under very difficult financial and economic situations with their strategic planning. The chairman of bank has also confirmed that they will give strong, sustainable and stable returns to the shareholders of the bank.

Payment protection insurance(http://www.ppiclaims.uk.com/payment-protection-insurance/) plan was also mentioned by Horta Osario in his speech. He said “We are focusing the group culture on producing value for money. We must move away from the industry culture of making money from products that ultimately customers do not need.”

But indications are reflecting on employees. It will take time for bank to restore its status. According to recent survey and financial figure it has been stated that about 85% of staffs are in stress, 77% were facing anxiety and depression. 77% of employees feel that main factor for stress is unrealistic targets. Profit is falling and employee grievances are on its head. In this situation, good news is only for mis sold PPI consumers who will receive their compensation soon.