Lloyds Banking Group has announced losses of £3.9m in the nine months to September 2011.
The lender – which last week left the City reeling following the decision by chief executive Antonio Horta-Osorio to take a leave of absence – announced the results in its interim management statement.
It claims the £3.2bn cost of settling claims for mis-selling payment protection insurance was largely to blame for the losses.
Total income for the period also fell 15% to £15.3bn.
Lloyd’s secured impairment charge was £416m, an increase on 2010. It says the relatively low impairment charge of £108m in the first nine months of 2010 was driven by a more favourable outlook for house prices against a background of stable arrears.
In the first nine months of 2011 the banks says its lending equated to £21bn and it increased its lending through its branch network.
It was announced last week that Horta-Osorio had requested a leave of absence after suffering