Profits plunge at Lloyds

British taxpayer-backed Lloyds Banking Group swung to a loss in the first half of the year after it took a £3.2bn (€3.65bn) hit to tackle the payment protection insurance scandal.

Lloyds, which is 41% state-owned, reported a £3.3bn (€3.77bn) pre-tax loss in the six months to June, compared to a £1.3bn (€1.48bn) profit last year.