The bank’s total bill for the PPI scandal now stands at almost £22bn.

The cost of the PPI compensation meant that the bank made only £50 million of profits in the third quarter of this year. It also hit the bank’s profits for the first nine months, which fell by 40% to £2.9bn.

The BBC reported that the £50m of third-quarter profits is down from £1.8bn in the same three months a year ago.

Antonio Horta-Osorio, Lloyds chief executive, said: “I am disappointed that our statutory result was significantly impacted by the additional PPI charge in the third quarter, driven by an unprecedented level of PPI information requests received in August”.

Lloyds has the biggest bill of all the banks for mis-selling of PPI.

Mr Horta-Osorio added that despite a “challenging external environment” Lloyd’s financial performance has been solid.

He said: “We will maintain our prudent approach to growth and risk whilst continuing to focus on reducing costs and investing in the business to transform the group for success in a digital world”.