Lloyds posts £439m loss as extra PPI claims hit profits

Lloyds Banking Group has reported a loss of £439m in the first half of the year, after the bank was forced to set aside an additional £700m for payment protection insurance (PPI) claims.

This is the second time this year Lloyds has increased the provision, raising the £3.2bn compensation package by £375m in May, following a spike in mis-selling claims. The extra £700m weighted in on profits in the first half but, on a brighter note, the retail bank increased underlying profit by £715m to £1.1bn. Antonio Horta-Osorio, the group's chief executive officer, said the group is on still track to meet financial targets despite reporting a loss. "We are on track to deliver our strategic aims and we are making significant progress with our financial targets," said Horta-Osor...