Lloyds said its £570m loss was "primarily due to PPI provisions" of £3.5 billion.
It said underlying profit for 2012 was £2.6 billion, an increase on the £638 million posted for 2011.
More top news
Sir Bruce Forsyth, Sir Cliff Richard and the Prime Minister have been among those paying tribute to Cilla Black following news of her death.
TV favourite Cilla Black, who has died aged 72, gave viewers a "lorra, lorra laughs" during her long career.
Some rain in the north. Very warm sunshine in the south