Lloyds Banking Group has set aside a further £350m to cover claims by customers who were mis-sold payment protection insurance (PPI).
The bank is making the additional provision after the Financial Conduct Authority (FCA) set a deadline of August 2019 for making new PPI complaints.
The regulator had originally proposed an earlier cut-off in June 2019.
Since the PPI scandal broke, Lloyds has paid total compensation of £17bn.
The bank said in its annual report, released on Friday, that the additional £350m provision will be reflected in its financial results for the first quarter.
PPI claims have been falling and in its most recent full year results for 2016, Lloyds more than doubled its pre-tax profit to £4.2bn from £1.6bn. Its PPI provisions fell to £1bn compared to £4bn in 2015.
Shares in Lloyds rose 1.1% to 69.31p.