Profits at Lloyds hit by PPI claims

The scandal around mis-sold payment-protection insurance (PPI) threatened to overshadow “substantial progress” at Lloyds Banking Group yesterday.

The lender, which is 39.7% taxpayer-owned, took an additional £375million hit to cover the growing volume of PPI claims, bringing the total set aside to nearly £3.6billion.

It triggered a 9% year-on-year slide in bottom-line pre-tax profits to £288million in the three months to March 31. Total income was down by 7% at £4.5billion

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