Lloyds Bank posts £3.5 billion loss

Lloyds Bank posts a 2011 loss of £3.5 billion following a profit of £300 million the previous year, somewhat higher than expected. The provision of over £3 billion to cover claims due to mis-selling of Payment Protection Insurance (PPI) is the main reason for the difference year on year.

This follows the RBS loss of £2 billion yesterday, both banks largely state owned and both needing dramatic increases in their share price before the Government breaks even and can get close to an exit strategy, though Lloyds shares have gained around 35% this year from a low level.