Lloyds Banking Group investors have shrugged off the bank's extra provisioning for PPI mis-selling, sending the bank's shares up 7% on better-than-expected progress on cost cutting.
The bank's share price rallied 6.7% to 43.3p on news that the group has reduced its loan book and cut bad debts. That made it the FTSE's second biggest riser behind BT, with the index up 0.4% at 5,805 in mid-morning trading. Lloyds set aside an extra £1bn to cover costs relating to PPI mis-selling and has announced a £583m loss for the first nine months of the year. 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...
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