LONDON (Reuters) - British bank Lloyds said it will take a 3.2 billion pounds ($5.3 billion) provision to cover it for losses from the mis-selling of protection insurance and suffered another 1.1 billion hit in Ireland.
The part-nationalized bank said it made the provision against payment protection insurance (PPI) complaints after UK banks last month lost a UK court case on the sale of how policies were sold to millions of customers.
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It followed discussion with Britain's financial watchdog, and could see rivals also make big provisions.
Lloyds reported a statutory loss of 3.5 billion pounds in the first quarter, compared to a 721 million pound profit a year ago. It said its pretax profit was 284 million pounds before the PPI provision and other one-off items.
(Reporting by Sudip Kar-Gupta and Steve Slater; Editing by Mike Nesbit)