Lloyds’ quarterly net loss grows to €1.3bn

Lloyds Banking Group, Britain’s biggest mortgage lender, posted a wider third-quarter loss after setting aside an additional £750m (€875m) to compensate clients wrongly sold loan insurance.

The net loss was about £1.3bn in the three months to the end of September from £390m in the year- earlier period, the London-based bank said in a statement. It reported £626m of losses on asset sales.

Lloyds’s recovery, which saw the British government sell £3.2bn of shares in the lender at a profit last month, has been blighted by past regulatory mistakes.