Update: Lloyds shares fall 3% on £1bn PPI hit

Reported 15% drop in quarterly profits

Shares in Lloyds Banking Group fell 3% in early morning trading, after the latest quarterly results revealed the bank had been forced to set aside another £1bn for PPI mis-selling.

As a result, Lloyds reported a 15% drop in quarterly pre-tax profits to £881m compared to £958m for the same quarter of 2015. The drop was attributed to a provision of £1bn taken in the period for PPI to cover further operating costs and redress, and a further provision of £150m in the third quarter to cover other conduct issues. This was partly the result of the PPI deadline being set for June 2019 earlier this year. As a result, shares in the bank fell 3% to 53.66p by 9.30am, making it one of the biggest fallers in the FTSE 100 index, but has since regained some losses to trade a...