Lloyds Banking Group announced on Monday morning that it would set aside an additional £800m for motor finance provisions, following a regulatory redress scheme that fell "at the adverse end of the range of previous expected outcomes."

The FTSE 100 banking giant, which owns Black Horse - the UK's largest motor finance lender, had previously allocated £1.2bn in provisions. This extra provision brings the total to just under £2bn, as reported by City AM .

Despite this, shares in the company rose by over one per cent as markets opened on Monday, reaching 83.85p.

Last Tuesday, the Financial Conduct Authority stated that it anticipates its redress programme will cost up to £11bn and cover 14.2m agreements dating back to 2007.

Following this news on Tuesday, Lloyds' share price surged 3.5

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