Lloyds Banking Group reported full-year profit below expectations on Thursday, weighed down by money it set aside for potential consumer redress in relation to a motor finance probe.

Lloyds Banking Group Plc reported earnings that missed expectations in the fourth quarter as the lender set aside an additional £700 million for possible costs it will face for a regulatory probe into its motor finance business.

Lloyds Banking Group has nearly tripled the amount it is setting aside to cover the car finance mis-selling scandal to £1.2bn, knocking its profits for the year. It is setting aside an extra £700m to cover potential compensation payments,