Lloyds Banking Group reports PPI loss

Lloyds Banking Group has announced a first quarter loss, after making a £3.2bn provision for potential mis-selling claims by customers who took out payment protection insurance (PPI).

In April, UK banks lost a judicial review over PPI compensation.

The decision by Lloyds to settle PPI claims may put pressure on other banks to do the same.

Lloyds reported a loss of £3.47bn for the first three months of the year. It made a £721m profit a year ago.