Lloyds shares dropped with investors uneasy over FCA motor probe

Lloyds Banking Group (LSE:LLOY) shares dropped more than 2% as the market reacted to the latest news regarding the UK’s potential clampdown on the motor financing trade.

Britain’s Financial Conduct Authority (FCA) on Tuesday announced it was extending its review of the sector, delaying a conclusion of the probe to May 2025 – rather than September 2024.

The FCA is investigating whether consumers were overcharged, via arrangements previously banned in 2021.

And, the watchdog is also now considering a redress scheme to compensate affected consumers.

In London, Lloyds shares closed at 60.82p, down just less than 0.5%, having traded as low as 59.70p at one stage in the day.

BP reported its latest bumper earnings, beating expectations

BP (LSE:BP) shares traded on the back foot on Tuesday, losing 0.3% by the close, after revealing second-quarter earnings of $2.8 billion. It was comfortably ahead of expectations which were pitched at $2.6 billion.

On a per share basis, it equated to 17 cents per share, beating the forecast of 15 cents.

It followed a strong performance, despite earlier warnings in the year.

BP announced an upgrade to its dividend, moving the interim payment to 8 cents per share and at the same time reported that it intended to buy back a further $1.75 billion of its shares – now, the oil firm expects to spend a total of $7 billion this year on such purposes. In London, BP shares closed slightly lower losing 0.3% to finish at 451.65p.