Increased PPI bill drags Lloyds to a quarterly loss

Lloyds Banking Group this morning reported a pre-tax loss of £144m, as it ramped up its provision for missold payment protection insurance (PPI).

Over the three months to September, losses came in at £144m, narrowing from £607m over the same period last year.

The UK’s biggest retail bank took another £1bn hit for compensation for the missold insurance, taking its total cost of redress to £5.3bn. So far the misselling scandal has cost the bank £3.7bn.

Lloyds said it is on track to cut costs to £10bn this year, down £1bn from 2010 and two years ahead of target.