Lloyds Banking Group unveils £2.4 bln quarterly loss

5th May 2011, Comments 0 comments

Britain's state-rescued Lloyds Banking Group on Thursday reported first-quarter net losses of £2.4 billion (2.7 billion euros, $4.0 billion) after being forced to repay clients who were mis-sold insurance.

LBG, 41-percent owned by the taxpayer, said it was setting aside £3.2 billion after Britain's banks last month lost a high court appeal against moves to tighten regulation of a controversial payments insurance.

LBG on Thursday said it was setting aside £3.2 billion to cover payouts to customers who were mis-sold payment protection insurance (PPI).

The bank, which on Thursday also reported a first-quarter pretax loss of £3.4 billion, said its losses "principally" reflected the £3.2 billion PPI repayment provisions.

© 2011 AFP

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