Lloyds warning as profits fall 21%

Taxpayer-backed Lloyds Banking Group has revealed a dip in third-quarter profits and warned it is in danger of missing its medium-term targets.

Lloyds, which is 41% owned by the Government, said underlying profits fell 21% to £644 million in the three months to September 30, after being hit by weaker demand for loans and higher wholesale funding costs.