Lloyds reports £3.5bn loss for 2011

Part-nationalised Lloyds Banking Group said that it is "in a significantly stronger position than it was 12 months ago" despite unveiling total losses of £3.5 billion for last year.

The losses, which compare with a £281 million profit the previous year and are driven by a £3.2 billion hit to tackle the payment protection insurance (PPI) scandal, are nearly twice the size of those at fellow state-backed bank Royal Bank of Scotland.