Lloyds makes £3.9bn loss after PPI hit

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Lloyds Banking Group has reported a statutory loss of £3.9bn in the first nine months of 2011 after being hit with a £3.2bn provision for payment protection insurance (PPI) claims.

The group, part owned by the UK taxpayer, said the PPI provision, combined with a charge for integration, simplification and EU mandated retail business disposal costs of £1.1bn, as well as negative insurance volatility of £737m, caused the loss. Excluding PPI and the other charges, Lloyds said profit before tax decreased by 30% to £1.7bn, compared to £2.5bn in 2010. Lloyds said the results had been impacted by a number of "temporary volatility effects" as well as the absence of liability management gains made the previous year. It said excluding these one-off effects, combined bus...

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