LONDON (Reuters) - Britain's biggest domestic lender Lloyds Banking Group reported a 26% drop in annual profit on Thursday, hit by increasing bad debts and billions of pounds of customer compensation.Provisions to cover payouts to customers mis-sold payment protection insurance (PPI) reached nearly 2.5 billion pounds in 2019, dragging down pretax profit to 4.4 billion pounds.Impairments on bad loans spiked to 1.3 billion pounds, up from 937 million pounds the previous year, as weakening..