Lloyds Bank increases PPI provisions by £550m

It brings its total bill for the PPI saga to £19.2 billion.

The lender has reported a 7% rise in underlying pre-tax profits to £4.2 billion for the half year, while bottom-line pre-tax profits rose 23% to £3.1 billion.

Lloyds Banking Group chief executive Antonio Horta-Osorio said: 'We have delivered another strong and sustainable financial performance with increased statutory profits, higher returns, and a strong capital build.

'In February, we announced an ambitious strategy to transform the group for continued success in a digital world.

'We have made a strong start in implementing the strategic initiatives which will digitise the group, enhance customer propositions, maximise our capabilities as an integrated financial services provider and transform the way we work.

'Our differentiated UK business model continues to deliver with our multi-brand, multi-channel approach, cost leadership, low-risk positioning, investment capacity and execution capabilities positioning us well for sustainable success and continuing to deliver our purpose of Helping Britain Prosper.'