Lloyds profits rise despite PPI bill

Lloyds Banking Group has added £1.4bn to its bill for compensating customers mis-sold payment protection insurance (PPI).

But Lloyds, which is backed by the British state, was still able to report a 38% rise in pre-tax profits for the first half of the year to £1.19 billion and announce a 0.75p dividend for shareholders, amounting to £535 million.