0747 GMT - The lowering of redress costs of the U.K. Financial Conduct Authority's probe into car-loan arrangements is encouraging, Jefferies says in a research note. The regulator now expects its compensation program to cost the industry 7.5 billion pounds--9% less than its previous estimate--or 9.1 billion pounds including administrative expenses. Given that many of the aggregate level assumptions have changed, it is somewhat pointless to try to transpose this onto individual bank loss estimates, analysts write. "Our initial view is that it is difficult to see how these final rules will lead to any material increase in their provision, and over time may allow for a modest release," they add. Lloyds Banking Group has set aside 1.95 billion pounds for the issue. Shares are up 1.2%. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

March 31, 2026 03:48 ET (07:48 GMT)

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