Financial News

  • 14 February 2014, 18:35

Lloyds Bank In 415m Pre-Tax Profit

Taxpayer-backed Lloyds Banking Group has returned to profit and declared itself a "normal bank".

The full-year statutory pre-tax profit was 415m, and is a turnaround from the 606m loss recorded in the previous year.

Lloyds is 33% owned by the British taxpayer after a 20bn bailout following the financial crisis.

In a conference call, chief executive Antonio Horta-Osorio declared the lender a "normal bank".

Mr Horta-Osorio is now in line for a 1.7m bonus in shares, deferred for five years, as first revealed by Sky News City Editor Mark Kleinman.

He previously revealed that Lloyds would unveil a staff bonus pool of 395m - up 9.7% on the 2012 figure.

The bank's underlying profit more than doubled to 6.2bn last year and it now expects to restart dividend payments in the second half of this year.

However, actions from the past still haunt Lloyds.

Last week, the bank made an additional payment protection insurance (PPI) provision of 1.8bn, taking its total provision to almost 10bn.

In September, the Government sold a 6% stake in the bank through the shareholding management body UK Financial Investments (UKFI).

The chief executive said Lloyds is ready to return to the private sector when instructed by the Treasury.

Chancellor George Osborne has previously revealed plans to unload more of the Government's stake ahead of the next general election.

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