So much for a turnaround! Another PPI bill for Lloyds

LLoYDs has set aside another £1.1bn for PPI misselling victims, taking its total bill to a huge £18.1bn.

It is the 17th time the lender has announced extra cash for compensation.

The costs cast a shadow over the bank’s first financial results since it returned to private hands in May, following a £20.3bn bailout during the financial crisis.

A list of woes saw the bank take a hit of £1.6bn for bad behaviour in the first half of 2017. It also announced a new £283m scheme to compensate 590,000 customers who fell behind on their mortgage payments and were wrongly overcharged.

Another £100m is being handed out to business owners who saw their livelihoods destroyed by criminal bankers in the reading branch of HBos, which Lloyds bought in 2008.

The lender has appointed retired judge Dame Linda Dobbs to investigate claims this fraud was covered up by executives, but bosses refused to promise that her report would be made public. ‘ We want to be as open as possible, but the most important thing... is that we discuss the findings with the Financial Conduct Authority first,’ said retail director David oldfield.

Profits rose to £2.5bn in the first half, up 4pc on the same period last year, but would have been higher without the compensation bill. However, it hiked the interim dividend 18pc to 1p per share. The stock fell 2.3pc, or 1.58p, to 67.5p.