Lloyds Bank has been forced to store an additional £600 million to cover the mis-selling of payment protection insurance (PPI).
The news, revealed in its interim update, comes a few days after it was fined £217 million for Libor manipulation.
The latest provision clouded a 32% rise pretax profits, which hit £3.8 billion in the first half.
In total the bank has taken provisions of £875 million in the first half for a number of legacy issues.
Overall PPI has cost the bank £10.4 billion, although it pointed out that the volume of PPI complaints continues to fall and was around 30% lower on the same period last year.
Despite this legacy issues the bank feels it is close to being able to resume its dividend payments, which were suspended during the credit crunch. It would be applying the Prudential Regulation Authority (PRA) to start payments at ‘modest’ level in the second half.