London, UK (BBN)- Lloyds Banking Group set aside a further £1.4bn to compensate customers who were mis-sold payment protection insurance (PPI) as it reported a 38 per cent rise in half year pre-tax profits.
It means the bank has now set aside more than £13bn in compensation, reports BBC.
Last month, Lloyds was fined a record £117m by the Financial Conduct Authority (FCA) over the mis-sold PPI .
The bank said profits for the six months to the end of June were £1.19bn compared with £863m a year earlier.
The PPI charge had been widely expected. The three months to the end of June mark the last quarter in which the bank can make set aside PPI compensation against its corporation tax bill.
Lloyds called the additional provision for PPI "disappointing". It said the extra provision reflected "higher than expected reactive complaints with higher associated redress".
The bank also took a charge of £660m on the sale of TSB.
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