Annual results by Lloyds Banking Group today included a £700 million provision for potential remediation costs relating to motor finance commission. Including the £450 million provided in 2023 results, Lloyds said the total of £1.15 billion represented its best estimate of the potential impact, including both redress and operational costs.
It said significant uncertainty remains around the final financial impact. Despite the additional provision, Lloyds has increased its dividend for the year by 15% to 3.17p. This includes a full-year distribution of 2.11p. It also intends to implement a share buyback programme of up to £1.7 billion as it continues to distribute excess capital to shareholders.
Pre-tax profits today fell 20% to £5.97 billion. Chief executive Charlie Nunn said: “The group delivered a robust financial performance in 2024. “Pleasingly and as expected, income grew in the second half of the year, supported by a rising banking net interest margin and momentum in other income.”.
The FTSE 100 index is forecast to recoup some of yesterday’s losses after US markets finished slightly higher last night. IG Index futures show London’s blue-chip index is set to rise by about 18 points, having fallen by 0.6% or 54 points to 8713 yesterday.
