Lloyds puts aside another £1.8b in mis-selling compensation

[LONDON] Lloyds Banking Group, the UK's biggest mortgage lender, has set aside £1.8 billion (S$3.7 billion) more to compensate clients wrongly sold insurance and signalled that it won't pay a dividend for 2013. The stock fell.

The provision brings the total the lender has set aside to compensate clients sold payment-protection insurance (PPI) to £9.8 billion, more than any other British lender.

The bank expects to report a "small" pretax profit for 2013, London-based Lloyds said in a statement yesterday.