'Lloyds is back to normal' says bank's chief executive

Lloyds Bank chief executive Antonio Horta-Osorio has told the BBC's business editor Robert Peston that the bank is "back to normal" because it has increased loans to all sectors and will soon pay dividends.

The UK bank reported a pre-tax profit of £415m for the first time since its £20.5bn bailout and Mr Horta-Osorio is in line for a deferred shares bonus worth £1.7m.

He acknowledged that many customers were not yet benefitting from the economic recovery but said the bank's progress meant it was "appropriate" to increase the bonus pool.