Lloyds dealt new blow with $1.5 billion mis-selling charge

British bank Lloyds (LLOY.L) has taken another 900 million pound ($1.5 billion) charge to compensate customers mis-sold loan insurance, delivering a further blow to the lender which only narrowly passed European health checks on the sector's finances. The new charge announced on Tuesday took the bank's total cost to cover the mis-selling of payment protection insurance (PPI) to 11.3 billion pounds, more than any other bank and close to half of the total bill for the industry. Analysts at Citi said they expected Lloyds Banking Group Plc to set aside another 1 billion pounds for PPI compensation next year and Lloyds Finance Director George Culmer told reporters on a conference call he could not rule out further increases. Lloyds said that, if it were to see a similar level of complaints in the fourth quarter as in the third, the required provision would increase again by 600 million pounds.

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