Lloyds makes £3.5bn annual loss

Lloyds Banking Group made a loss of £3.5bn for the year to 31 December after setting aside £3.2bn to cover payment protection insurance claims.

In 2010 the bank, which is 41% owned by the UK taxpayer, had made a pre-tax profit of £281m.

The bank said last year it was setting aside money to cover claims over mis-sold PPI - loan repayment insurance.

Simon Gompertz reports.

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