visimoney
TLDR:
- Lloyds Banking Group reported a 57% jump in annual profit despite a murky UK outlook.
- The bank set aside a 450 million pound charge for potential costs from a regulatory review into motor finance.
Lloyds’ profit increase was driven by a light charge for bad loans, boosted by lending revenue from higher Bank of England interest rates. The bank also adopted more positive economic forecasts for 2024. However, analysts are concerned about the adequacy of the provision set aside for potential compensation claims related to car loan charging practices. The review could lead to significant costs for Lloyds and the banking sector as a whole. CEO Charlie Nunn confirmed that the bank is admitting no liability in the provision. Additionally, Lloyds announced dividends, share buybacks, and performance guidance for the coming years in its earnings report. The appointment of former Banco Santander executive Nathan Bostock to the board was also highlighted in the article.
