Lloyds and other lenders set to announce fresh PPI provisions, report claims

Britain's largest lenders are preparing to set aside billions of more pounds for provisions against the payment protection insurance mis-selling scandal, according to reports over the weekend.

Insiders from Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander UK told Sky News the banks would reveal at least £5bn in fresh provisions alongside their full-year 2015 earnings.

That would come on top of the £27bn already incurred in costs for PPI mis-selling.

Some of the sources cited by Sky said the eventual tally for new provisions could be even higher than £5bn.

In the case of Lloyds, which had roughly half the market for PPI insurance, the new provisions could reach a further £2.5bn, on top of the £13.9bn already paid out, the report said.

The news came amid plans by the Financial Conduct Authority, the sector's regulator, to set a two-year deadline for consumers to claim compensation.