Lloyds takes $3.1 billion charge for miss-selling insurance, prepares to pay dividends

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LONDON (AP) — Lloyds bank says it plans to set aside another 1.9 billion pounds ($3.1 billion) to cover the excesses of the financial crisis as it prepares to begin paying dividends for the first time since 2008.

The part-nationalized bank warned it would need to set aside the extra money to cover the costs of miss-selling payment protection insurance and interest rate hedging products.

In a preliminary earnings statement Monday it also reported an underlying profit of 6.2 billion pounds. Final earnings figures are to be released next week.

The group also confirmed it has begun the preparatory work to sell shares. The move had been telegraphed by Treasury chief George Osborne late last year.

The bank last paid a dividend just before a 20 billion-pound rescue by British taxpayers.

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