Lloyds shares retreat from 14-month highs on PPI fears

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Shares in Lloyds Banking Group and RBS have fallen today after broker Cazenove warned of the potential impact of further PPI provisioning.

Peer Barclays yesterday announced it had put aside an extra £700m to cover potential PPI mis-selling claims, bringing its total provisions to £2bn. The bank's shares were down 1.8% at 236p in afternoon trading today. The announcement has turned the spotlight on other banks, with Cazenove today taking action against the other two UK-focused lenders. Cazenove downgraded Lloyds from neutral to underweight, citing concerns over "a shift in the UK regulatory approach" and expectations that payment protection insurance mis-selling claims could damage 2013 net earnings. Lloyds shares were...

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