Lloyds Bank (LON:LLOY) have once again seen profits hit by expensive compensation claims, sending shares down over 2 percent on Thursday.
In its half year results, the bank announced that it had set aside another £1 billion to cover charges relating to payment protection insurance (PPI) claims, leading pre-tax profits to come in below expectations.
Lloyds also said it would pay further compensation to the 590,000 customers who were incorrectly charged mortgage arrears fees, bringing the total compensation paid to correct that scandal up to £552 million.
Pre-tax profits rose 4 percent to £2.5 billion in the six months to June, with underlying profit up 8 per cent to £4.5 billion. The group recorded an underlying return on tangible equity of 16.6 per cent, with total income 4 per cent higher at £9.3 billion.
Shares in Lloyds Banking Group (LON:LLOY) are currently down 2.12 percent at 67.57 (1011GMT).
