Lloyds Banking Group swings to a loss

Lloyds, which is 41 per cent state-owned, reported a £3.3bn pre-tax loss in the six months to June, compared to a £1.3bn profit last year.

Stripping out the provision set aside for customers mis-sold PPI, the bank saw underlying profits plunge 31 per cent to £1.1bn as it struggled with the “subdued” economic climate.

Elsewhere, the bank confirmed it had received “a number of credible initial approaches” for the 632 branches it is being forced to sell by EU regulators and hopes to have a buyer by the end of the year.