0909 GMT - The U.K. banking sector could face a total liability of around 28 billion pounds from motor finance cases related to commissions on car loans, Keefe, Bruyette & Woods says in a report. The estimate is based on the assumption that U.K. banks are unsuccessful with their Supreme Court appeal and on a total commission redress. "The biggest area of uncertainty is the quantum of commission, which varies between 2% and 26% in the Court of Appeal and Financial Ombudsman cases," analysts write. KBW raises its redress liability estimate for Lloyds Banking Group to 4.2 billion pounds from 2 billion pounds. For Close Brothers, it now pencils in a 460 million-pound liability, up from 350 million pounds previously, while a modest 29 million-pound hit is still expected for Vanquis. These are already more than reflected in share prices, KBW notes. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
January 06, 2025 04:09 ET (09:09 GMT)
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