Lloyds Banking Group has announced a statutory pre tax loss of £439m for first half of 2012.
The bank has also said it has put aside a £700m provision in the second quarter for loan insurance mis-selling.
The bank had previously set aside £3.6bn to cover compensation for the PPI mis-selling after a sharp rise in claims in recent months.
The banks have said the spike in claims is fuelled by aggressive marketing by claims-management companies.
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