More bad news for Lloyds. The British bank has had to set aside another 900 million pounds (1.1 billion euros) to compensate customers who were mis-sold loan insurance – known as payment protection insurance or PPI.

That is almost certainly not the end of it. Lloyds Banking Group Finance Director George Culmer told reporters on a conference call he could not rule out further increases.

Analysts at Citi said they expected Lloyds to set aside another one billion pounds (1.27 billion euros) for PPI compensation next year.

The new charge announced on Tuesday took the bank’s total cost to cover the mis-selling of PPI to 11.3 billion pounds (14.4 billion euros), more than any other bank and close to half of the total bill for the industry.

PPI policies were meant to cover repayments if customers fell ill or lost their jobs, but were often sold to people who did not need them or would be ineligible to claim.

Layoffs

Lloyds, which is 25 percent-owned by the British government after needi