Lloyds's New Look Overshadowed by Old Scandal as Charges Climb

  • Bank set aside more than 1 billion pounds for PPI, other costs
  • Adjusted pretax profit beat estimates after MBNA purchase

The Lloyds' prancing horse logo sits on signs hanging outside a Lloyds Bank branch, a unit of Lloyds Banking Group Plc, in London, U.K., on Thursday, July 28, 2016.

Photographer: Simon Dawson/Bloomberg
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Lloyds Banking Group Plc Chief Executive Officer Antonio Horta-Osorio keeps getting tripped up by his bank’s past misconduct.

The payment protection insurance scandal once again overshadowed the lender’s attempts to move forward, contributing to more than 1 billion pounds ($1.3 billion) of conduct charges in the second quarter. The bank’s shares dropped despite underlying profit topping estimates on lower-than-expected loan impairments and higher interest income.