Lloyds Banking Group has said it is setting aside a further £100 million to compensate victims of the HBOS fraud, as the Financial Conduct Authority announced it is re-opening its investigation into the matter.

The bank, which had already incurred £250 million of losses related to the misconduct of employees in the impaired assets team at HBOS' Reading unit, said the latest provision is to cover compensation for "economic losses, distress and inconvenience". The additional sum will be included in its first quarter results on April 27.