Irish debt crisis hits Lloyds group

Part-nationalised Lloyds Banking Group fell back into the red today after it set aside £3.2bn (€3.5bn) to cover payment protection insurance (PPI) mis-selling claims.

The bank, which is 41% owned by the taxpayer, reported a pre-tax loss of £3.47bn (€3.8bn) in the first three months of the year, compared to a £721m (€801m) profit last year.