State-backed Lloyds Banking Group today said it had reached a £117 million settlement with the City regulator over the way it handled complaints about payment protection insurance (PPI).
Lloyds apologised to customers affected and said £2.65 million worth of bonuses was being withheld from executives.
The group, which remains nearly 19% owned by the taxpayer after being rescued during the financial crisis, has already set aside £12 billion to cover the cost of compensating those mis-sold PPI.
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The penalty to the Financial Conduct Authority (FCA) relates to the handling of complaints over the scandal during the period of March 2012 to May 2013.