Lloyds reports third quarter loss as PPI bill tops 8bn pounds - UPDATE

- Takes additional 750m pound PPI hit- Q3 statutory loss of 440m pounds- Underlying Q3 profits up 83 per centLloyds Banking Group reported a pre-tax loss in the third quarter after it put aside another 750m pounds to cover the cost of payment protection insurance (PPI) claims.The additional provision means that the bank's total PPI bill has now topped £8bn and it pushed its statutory loss for the quarter to £440m against a £151m loss in the same quarter of 2012. Investors took the opportunity to lock in some profits after the shares' recent strong run and they were down 2.69% at 77.48p an hour into trading on Tuesday. But stripped of the PPI hit and other charges, the bank's underlying profits rose 83% in the third quarter to £1.5bn. The growth was driven by an improvement in its net interest margin, reduced costs and a decline in its impairment charge. Lloyds raised its net interest margin target for the full year to 2.11% after it improved to 2.17% in the third quarter. Its third quarter saw the return of the TSB bank to the high street and the rebranding of Lloyds Bank. Chief Executive António Horta-Osório said: "I am pleased that the progress we have made enabled the UK government to begin the process of returning the group to full private ownership, and importantly, getting taxpayer's money back at a profit."The bank said it had started discussions with regulators about the timetable and conditions for future dividend payments. TB