By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- The U.K.'s FTSE 100 index dropped for the first time in seven days on Thursday, as some of the benchmark's major companies, including Lloyds Banking Group, Rolls-Royce and Rio Tinto, declined after reporting earnings.

The FTSE index lost 0.7% to 6,628.00, after closing at the highest level since Jan. 23 on Wednesday.

Shares of Lloyds Banking Group PLC (LYG) dropped 4.2% after the bank posted a full-year loss as provisions for mis-sold payment-protections insurance continued to have an impact on its bottom line.

Other banks were also on the decline, with shares of Barclays PLC (BCS) down 2.8%, Royal Bank of Scotland Group PLC (RBS) off 1.7%, and heavyweight HSBC Holdings PLC (HSBC) 0.3% lower.

Shares of Rolls-Royce Holdings PLC slumped 13% after the aerospace and defense company warned that it expects no revenue growth in 2014 for the first time in 10 years. For 2013, the company reported a 41% drop in profit.

Tate & Lyle PLC slid 15% after the food-ingredient firm lowered its guidance for fiscal 2014.

Shares of Rio Tinto PLC (RIO) slipped 0.5% after the mining giant said it swung to an annual profit in 2013, but also said it will write down assets, including its Oyu Tolgoi copper project in Mongolia, by $3.4 billion.

The rest of the mining sector also moved lower, as most metals prices declined. Shares of Antofagasta PLC dropped 2.2%, Anglo American PLC lost 1.7%, and Glencore Xstrata PLC (GLCNF) fell 1.6%.

On a more upbeat note, shares of Imperial Tobacco Group PLC (ITYBY) rallied 5% after the tobacco company said it expects modest growth in earnings per share for the full year and at least a 10% increase in dividend.

British American Tobacco PLC (BTI) gained 1.4%.

Among other notable advancers, AMEC PLC rose 2.6% after the oil-services firm said it agreed to buy U.S.-listed Switzerland-based Foster Wheeler AG (FWHLF) in a cash-and-shares deal valued at around $3.3 billion.

Shire PLC climbed 1.7% after the biopharma firm said full-year revenue rose 9%.

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