The lender said provision for the mis-selling of payment protection insurance was the “primary driver” of its statutory loss for the first nine months of 2012.
The bank has now set aside £2.1bn this year to cover PPI-related costs and £5.3bn in total.
The bank said today the volume of complaints are falling.
“By the time of our full year 2012 results announcement on 1 March 2013, we expect to have a higher degree of confidence in forecast trends and the ultimate likely cost of PPI,” said chief executive António Horta-Osório.
Lloyds, the largest mortgage lender in the UK, revealed it has committed to lend £500m of first-time buyer mortgages with the support of the government’s Funding for Lending Scheme (FLS).
The lender said it was the first bank to draw on the scheme in September 2012, drawing down £1bn to help UK households and SMEs, and is expected to make additional drawings over the coming months.
The lender has helped 40,000 first-time buyers this year so far.
It also revealed its underlying profit rose by 148% to £1.9bn for the first nine months of the year, driven by decreasing impairment charges and improving cost efficiency.
A 14% fall in total underlying income, from £16.1bn to £13.8bn year-on-year, reflected “a smaller balance sheet as well as a lower net interest margin of 1.93%”.
The group confirmed it would not offer advice to customers with under £100,000 post-RDR.
“For customers who hold less than £100,000 in savings and investments we will not offer an investment advice service but will continue to give these customers information and help with savings products on a non-advised basis,” it said.
