Lloyds share price: Group to review HBOS customer cases

on Feb 8, 2017
Updated: Oct 21, 2019

Lloyds Banking Group (LON:LLOY) is set to review cases of HBOS customers affected by a fraud involving two ex-employees, the BBC has reported. The move will come after MPs urged the bailed-out lender this week to repay the victims of the fraud despite it taking place before the FTSE 100 group took ownership of HBOS.

Lloyds’ share price rose marginally in yesterday’s session, adding 0.11 percent to close at 66.13p. The advance was largely in line with gains in the broader London market, with the benchmark FTSE 100 index adding 0.20 percent to 7,186.22 points, finding support in a weaker pound. The shares meanwhile continue to trade below the government’s break-even price of 73.6p.
The BBC reported yesterday that Lloyds was set to review the cases of HBOS customers affected by a fraud involving two ex-employees, who were jailed last week. The fraud saw the two corrupt employees impose a firm of turnaround consultants on their small business customers in exchange for bribes.

“Customer cases will be considered afresh in light of all relevant evidence including new evidence that emerged during the trial,” Lloyds said in a statement. “Since the investigation began in 2010, it was important that the group did not do or say anything that could subsequently prejudice the trial.”
The Financial Times noted in its coverage of the news that the conclusion of the review, which is expected to take up to six months, could lead to the group paying out compensation.
The 21 analysts offering 12-month price targets for Lloyds for the FT have a median target of 74.00p on the shares, with a high estimate of 93.00p and a low estimate of 40.00p. As of February 6, the consensus forecast amongst 27 polled investment analysts covering the bailed-out lender has it that the company will outperform the market.
As of 07:55 GMT, Wednesday, 08 February, Lloyds Banking Group share price is 59.42p.

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