Russ Mould, investment director at AJ Bell, said: “There will be some relief that Lloyds is not being forced to change its provisions, at least for the time being, in the wake of the redress scheme for the motor finance mis-selling scandal being announced.
“Details had shifted slightly from previous indications on average levels of compensation, but it seems Lloyds had been conservative enough in its assumptions to absorb this.
“Lloyds shares were lower this morning but the fall was similar to that seen for its peers amid broader market weakness relating to Iran.
“The hope for shareholders will be that Lloyds can now leave this issue firmly in the rearview mirror and motor ahead with its strategy of revving up its wealth management and fintech capabilities.
“A potential roadblock is the risk of legal action from complainants unhappy with the FCA settlement and this may linger over the stock like nagging creaks in a car’s suspension for some time to come.”
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