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Lloyds takes further hit on mis-sold insurance

Oli Scarff | Getty Images

Lloyds Banking Group announced third-quarter underlying pretax profit of £1.5 billion ($2.4 billion), up from £831 million the year before and meeting analysts' expectations as its chief executive hailed an "important" nine months for the the U.K. retail lender.

The bank, which is 33 percent owned by the U.K. taxpayer, also announced an additional charge of £750 million over the mis-selling of loan payment protection insurance.

(Watch: The Banking Business: Lloyds)

The bank, like most of its U.K. peers, has had to pay out billions of pounds over the mis-selling of PPI insurance and interest-rate hedging products to consumers.

Lloyds' share price opened 3.6 percent lower in morning trade in London Tuesday.

(Read more: Lloyds eyes dividend bonanza)

The bank's share price has nearly doubled in the past year, as it launched a successful share sale, a key milestone in concluding the era of U.K. government ownership. It has also sold off assets in Australia and is brokering a deal with Aberdeen Asset Management to sell off fund management arm Scottish Widows Investment Partnership - and may even resume dividend payouts next year.

"The nine months to the end of September have been important for the group," chief executive Antonio Horta-Osorio said in a statement, adding that the bank was on its way to "becoming a better, simpler, low-risk bank".

(Read more: After record profits, are UK banks fighting the 'last war'?)

Follow Catherine on Twitter: @cboylecnbc

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