Lloyds takes further 1.9 bln stg mis-selling hit

LONDON, March 1 (Reuters) - State-backed British bank Lloyds made a loss last year after setting aside another 1.9billion pounds ($2.9 billion) to compensate customers mis-soldinsurance and other products.

Lloyds, Britain's biggest retail bank, set aside another 1.5billion pounds to compensate customers for mis-sold paymentprotection products, taking its bill for that to 6.8 billion. Itset aside 400 million pounds more for compensation on interestrate swaps.

Those provisions dragged the bank to a pretax loss of 570million pounds for the year, compared to a loss of 3.5 billionin 2011.