Lloyds Banking Group has set aside a further £1 billion to fund compensation claims for the mis-selling of payment protection insurance (PPI).
The lender, which is partly state-owned, said it has also accounted for a further £150 million to cover other conduct issues, including £100 million relating to packaged bank accounts.
Lloyds is the worst affected by the PPI scandal, and revealed as part of its third-quarter trading update that it would take a further hit.
The banking industry's PPI bill already stands at over £30 billion.
Earlier this year, the Financial Conduct Authority moved to set a June 2019 deadline on PPI claims.
In July, chief executive Antonio Horta-Osorio announced that Lloyds ws cutting 3,000 jobs and shutting 200 branches as part of an efficiency drive.