The PPI scandal has hit the profits of banks across the country, costing the sector over £50bn.

In November last year, Virgin Money was hit by a £450 million PPI bill whilst a month earlier, RBS reported a £900m hit from PPI compensation.

The new charge faced by Lloyds meant that the bank has paid around £22bn in compensation for the scandal, more than any other bank, The Times reports.

The bank has also been hit by the HBOS Reading scam, and its poor management of the aftermath of the scandal has resulted in Lloyds promising £35,000 to nearly 200 fraud victims who suffered at the hands of the scam.

Lloyds is set to report pre-tax profits of £4.5bn for 2019, down from £6bn in 2018. It is expected that the bank will cut bonuses this year, partly due to the PPI compensation.

It is expected that Lloyds will cut chief executive Antonio Horta-Osorio’s annual pension allowance in half, to less than £200,000. Mr Horta-Osorio received a total pay of £6.3m in 2018.