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Shares in Lloyds Banking Group shed 2.4 percent To77.71 pence, top fallers on Britain's FTSE 100, afterthe bank takes another big bill to compensate customers formis-sold insurance products, prompting investors to lock inprofits after a stellar rally.
Lloyds took a 750 million pound ($1.2 billion) charge forthe mis-selling of payment protection insurance (PPI) in thethird quarter, meaning it has now set aside more than 8 billionpounds for the scandal, far more than any other bank.
"There's quite a large sum of money set aside for PPI whichis a bit of a shock," says JN Financial trader Rick Jones.
The FTSE 350 banking sector, off 0.2 percent,is the biggest drag on a 0.5 percent firmer FTSE 100 index asnumbers from Standard Chartered, UBS andDeutsche Bank, which analysts call disappointing,also take their toll on sentiment.
Lloyds shares have leapt some 60 percent in 2013,outperforming the FTSE 350 banking sector, up 10 percent, and a14.5 percent rise on the FTSE 100.
"I suspect there's a bit of profit taking in there", saysRichard Hunter, head of equities at Hargreaves Lansdown.
"I have to say overall, we know it's a work in progress, butit looks like for its part Lloyds has done what it's been askedto do; it's returning to profitability and stability... thefinal thing which (it has) to sort out... is a return todividend payment."
Numis Securities, meanwhile, cuts its rating on Lloyds to"hold" from "add".
Trading volume in Lloyds is robust, at 70 percent of the90-day daily average, against the FTSE 100 on 27 percent.
For further stories on Lloyds:
($1 = 0.6199 British pounds)
Reuters messagingrm://tricia.wright1.thomsonreuters.com@reuters.net
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