The embattled bank was forced to pay out £3.2bn in PPI compensation payments last year and has set aside £4.3bn, more than double that of any other lender for compensation claims related to mis-selling so far.
The bank is set to report earnings this Thursday.
In September, the FSA warned all UK banks to stop treating customers like sales targets.
Lloyds, which has been piloting a new sales incentives scheme since February, said: “We have a clear incentive framework for colleagues that ensures we reward behaviours that are focused on achieving correct customer outcomes and excellent service. No product is incentivised in isolation and we have a number of quality controls in place which colleagues must adhere to be considered for any incentive.”
The bank said the metrics measuring its customer service include providing friendly, professional, helpful service, meeting customer needs appropriately and delivering the right outcome for customers after complaints.
“We review our incentive schemes four times a year to ensure they are relevant and appropriate to meet the needs of both our colleagues and customers,” it said.
