Lloyds Bank 'dealing with legacy issues'

Profits at Lloyds Banking Group dipped by 9% from the previous quarter.

The bank made £288m in the first three months of the year.

That is despite putting aside £375m to pay compensation for the mis-selling of payment protection insurance (PPI).

Lloyds, which is 40%-owned by the government, said the extra PPI provisions were down to "the increase in the volume of complaints".

Paul Kavanagh, Chairman of Killik Capital, told the BBC that Lloyds is "dealing with legacy issues".