Lloyds blames PPI claims for £3.3bn loss in first half

Taxpayer-backed Lloyds Banking Group has posted a loss of £3.3bn in the first half as it was hit with claims for the mishandling of payment protection insurance (PPI).

This compares to the £1.3bn profit the banks made this time last year. Lloyds, now 41% state-owned, was forced to set aside £3.2bn in May after losing its legal battle over how PPI was sold to millions of consumers. Profits before tax stands at £1.1bn for the first six months of the year, down from the £1.6bn figure a year earlier. Chief executive Antonio Horta-Osorio said the bank's performance showed resilience despite the ongoing challenges of economic and regulatory uncertainty. He added the bank is making "substantial progress" in the strategy he laid out in June, with the aim...