From the Reuters article:
"In Britain, Lloyds set aside another 750 million pounds ($1.21 billion) to compensate customers who were mis-sold payment protection insurance (PPI). Shares in Lloyds were down 1.9 percent at 1145 GMT, even though the bank almost doubled underlying profits in the third quarter."
So--- Their current business is doing very well, but Lloyds is still dealing with the cleanup of the banking debacle. Looking forward, if you're a long-term investor, this shouldn't bother you too much.
profits did not almost double if you exclude the selling of non core assets. Earnings were a big disappointment. stock is falling because growth has slowed , bank will dilute current shareholders after the government exits. The will probably do the 40 percent discount to current pps like Barcalys. sale sale sale.