Lloyds Banking Group PLC (LSE:LLOY) said it may need to set aside "material" extra provisions for motor finance compensation.
Yesterday, the Financial Conduct Authority stated that it expected the costs of a redress scheme to be around £11 billion, comprising an estimated £8.2 billion in compensation and £2.8 billion in costs.
Analysts were divided, with some saying this looked at the low end of the FCA's previous £9-18 billion indicated range after the Supreme Court decision in August, while others felt Lloyds might not have set aside large enough provisions.
In a short statement on Thursday morning, the UK's largest lender said it was continuing to calculate the likely impact of the FCA consultation paper.
"Uncertainties remain outstanding on the interpretation and implementation of the proposals but based on our initial analysis and the characteristics of the proposed scheme, an additional provision is likely to be required which may be material," the bank said.
However, it cautioned again that it is continuing to analyse and review the proposals, and will update the market again when it knows more.