Part-nationalized Lloyds bank says six-month profits more than halved amid more charges

The part-nationalized Lloyds Banking Group says its six-month net profit more than halved to 699 million pounds ($1.45 billion) after it put aside another 600 million pounds to cover the cost of improperly sold payment protection insurance.

The group said Thursday the profit fell from 1.58 billion pounds a year earlier.

Continue Reading Below

It said that with the latest charges, the total cost for wrongly selling protection insurance exceeds 10 billion pounds. It booked another 217 million pounds for a fine for market-rigging.

The bank began a deep restructuring after it received a 20 billion-pound government bailout in 2008.

Chief Executive Antonio Horta-Osorio said the group's three-year strategic plan is nearly completed and the bank is now able to "take advantage of the new growth phase of the U.K. economy."