Lloyds PPI bill hits £5.3m

The head of Lloyds Banking Group said it had made "significant progress" despite reporting a third quarter loss, caused by additional costs from the PPI scandal.

"We could not transform this business without addressing the PPI legacy," Chief executive Antonio Horta-Osorio said, adding that he was confident the group could rebuild the trust of its customers.

Mr Horta-Osorio said the scandal happened as banks "lost sight of their core values, had become complacent, non-customer focused and inefficient".

The extra charge pushed Lloyds, which is 40% owned by taxpayers, to a £144 million loss in the third quarter.

Stripping out the cost of PPI, though, the bank doubled its underlying profit to a better-than-expected £840 million in the three months to September 30.

The gains came after Lloyds slashed bad debts and narrowed losses from its non-core businesses.

Lloyds Banking Group today reported an additional charge to cover the cost of mis-sold payment protection claims of £1 billion. It brings the bank's total bill to £5.3 billion.