London — Lloyds Banking Group posted a bigger drop than expected in reported profit as the payment protection insurance scandal once again marred its results. The bank took a £700m PPI charge in the second quarter — the 17th time it has topped up its reserves for customer compensation since 2011 — raising the total cost to more than £18bn. The lender also had $340m in other conduct charges in the quarter, including costs of a new programme to reimburse fees tied to the handling of mortgage arrears. The conduct costs overshadowed lower-than-expected loan-impairment costs and a jump in interest income as the bank said consumer credit quality improved. The shares dropped as much as 3%, the biggest decline in more than a month. "In the retail business there will always be mistakes made and we will have to redress people," CEO Antonio Horta-Osorio said on a call with reporters. "We are obviously hopeful and committed that our current business practices will put this legacy behind us and ...
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