Compensating customers who were mis-sold insurance pushed Lloyds
Excluding the 3.2 billion pounds Lloyds had already earmarked to cover mis-selling liabilities, the bank's adjusted pretax profit was 1.1 billion pounds, down from 1.6 billion pounds reported a year earlier.
That was broadly in line with the 1 billion pound figure expected by analysts, according to the average forecast on Thomson Reuters I/B/E/S.
Our guidance given in our Strategic Review announcement on 30 June 2011 remains unchanged, the company said in a statement Thursday. We continue to monitor economic conditions closely, notably in the UK and Eurozone.
Lloyds, 41-percent owned by the British government after a credit crisis bailout, said it had cut impairment charges on bad loans by 17 percent to 5.4 billion pounds although its Wealth & International unit reported a 2.1 billion pound loss, primarily due to higher impairment charges in Ireland.
($1 = 0.609 British Pounds)
(Reporting by Sudip Kar-Gupta and Steve Slater; Writing by Paul Hoskins)