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 has had to set side another £700 million to cover the fallout from a probe and related court ruling on the historic mis-selling of car finance.

Lloyds sets aside £1.2bn for car finance saga as profits slide by a fifth - An additional £700 million provision taken in the final three months of the year adds to the £450 million already confirmed last year.

The lender took a further provision in the fourth quarter for the potential hit of a possible redress linked to its motor finance business, leading its pretax profit for the period to miss expectations.

Lloyds Banking Group saw its annual profit fall below forecasts as it braces itself for the financial fallout from potential consumer redress in respect of a motor finance probe.