We're currently experiencing extremely high call volumes. We're very sorry for any inconvenience this might cause.

If you need help with your account, please visit our Help Centre, or email us and we’ll get back to you as soon as we can. For more information and tips on managing your account online please visit www.hl.co.uk/coronavirus

We’re experiencing high call volumes, please check FAQs before calling.

Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account

Lloyds bank's annual profits hit by £2.5bn PPI charge

The group was hit by an additional £2.5bn bill for payment protection insurance, sending pre-tax profit for 2019 down by more than a quarter to £4.4bn.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Britain’s best-paid banking boss, António Horta-Osório, has taken a 28% cut in his £6.5m pay package as Lloyds Banking Group reported a sharp fall in profits last year.

The group was hit by an additional £2.5bn bill for payment protection insurance, sending pre-tax profit for 2019 down by more than a quarter to £4.4bn. That compared with £6bn a year earlier, but was ahead of the £3bn expected by analysts.

Lloyds has slashed the total pay package for its chief executive to £4.7m, and has cut the group bonus pool for the first time in four years, with payouts down 33% to a total of £310m.

Lloyds said the bonus cuts reflected results that were “heavily impacted by the additional PPI provision and other conduct-related issues”.

Of the additional £2.5bn in PPI charges last year, £1.8bn was taken in the third quarter. The bank made no further provisions in the final three months of the year, signalling that the mis-selling scandal may now be at an end.

Lloyds Banking Group plc

Sell: 28.79 | Buy: 28.84 positive 0.64 (2.25%)
Graph
Prices delayed by at least 15 minutes.

Lloyds has paid out significantly more in compensation than any other bank, putting aside almost £22bn to cover PPI. The bill for the banking sector as a whole is more than £50bn.


This article was written by Kalyeena Makortoff Banking correspondent from The Guardian and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Free news email alerts

  • Daily and weekly news
  • Major Publishers
Register