LONDON, July 31 Lloyds Banking Group
reported a 32 percent increase in underlying first-half profit,
helping it absorb an increase in the cost of compensating
customers mis-sold loan insurance.
The bank, which is 25 percent-owned by the government having
been rescued during the 2008 financial crisis, reported an
underlying profit of 3.8 billion pounds ($6.4 billion),
benefiting from an increased margin and improving economic
Lloyds said it had set aside an extra 600 million pounds to
compensate customers mis-sold payment protection insurance,
taking its total bill to over 10 billion pounds.
($1 = 0.5913 British Pounds)
(Reporting by Matt Scuffham; Editing by Steve Slater)