Lloyds Banking Group (LYG) said Monday it is setting aside an additional 800 million pounds ($1.07 billion) to compensate customers who were sold misleading car loans.

The bank has already set aside 1.15 billion pounds under a UK Financial Conduct Authority redress program for customers who paid commissions on car loans that the financial watchdog deemed to be unfair.

The additional provisioning reflects the "increased likelihood of a higher number of historical cases" being eligible for redress, Lloyds said, including those dating back to 2007.

"Based on the FCA proposals in their current form, the potential impact is at the adverse end of the range of previous expected outcomes," the bank said.

Lloyds Banking shares were up 1.9% in premarket US trading.