Despite Lloyds posting losses of £3.9bn for the year to date, investors have been urged to snap up shares in the bank as was reported they could double in value in the next five years.

Lloyds was hit hard by refund pay-outs for mis-selling of Payment Protection Insurance (PPI), dragging down its third quarter numbers. However, other positive news in the Lloyds’ results makes the bank an attractive investment for those with a “strong nerve”.

PPI refunds were always going to eat heavily into profits, but this headline detracts from a slow and steady underlying recovery story. Impairments are down, the integration programme is bearing fruit and good margins are being achieved on the retail business.

Nonetheless, optimism, while justified, should be prudent. Lloyds has made it crystal clear that its recovery will be slow, conceding that some of its medium term financial targets will be delayed to 2014 or later.

Commenting on the PPI refunds market, Sally Bowyer, Managing Director of leading claims firm BrunelFranklin.com said: “We continue to see a huge increase in PPI refund applications as public awareness gradually rises. Cases of mis-selling are still coming to light; as people feel the financial squeeze and learn of the PPI refund successes of friends, family and colleagues, the upward trend in the number of people seeking refunds is likely to continue for the foreseeable future.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.