Lloyds Banking Group has reported a 7% fall in its profits for 2015 as it increased provisions for Payment Protection Insurance (PPI) compensation.
The bank, which is still part-owned by the taxpayer, posted profits of £1.6 billion for the year, down from £1.8bn in 2014.
Lloyds set aside a total of £4bn for PPI compensation, more than half of which came in the final quarter after the Financial Conduct Authority set a deadline by which consumers must claim for PPI compensation. The latest provision takes than bank's total to £16bn - more than any other.
Consumers have until 2018 to make their claims. LLoyds said it welcomed the "the decision of the Financial Conduct Authority to consult on a deadline for PPI complaints and the certainty that this will bring for both customers and shareholders".
The bank also took a charge of £837m relating to a complaints over packaged bank accounts and "a number of other product rectifications primarily in retail, insurance and commercial banking".
Lloyds Banking Group chief executive, Antonio Horta-Osorio said: "We made a strong start in 2015 to the next phase of our strategy and have delivered a robust financial performance, enabling increased dividend payments."
