Nunn and fellow bank bosses had been hopeful that their payouts might be curbed after the chancellor, Rachel Reeves, controversially applied to intervene in the supreme court hearing last month.
Lloyds Banking Group has been forced to put aside a further £700m for potential compensation over the ballooning car loan commission scandal, in a move that knocked its annual profits by 20%.
While Lloyds is not a party to the court case, it has the biggest exposure to car loans among the UK’s high street banks, and its share price has been roiled as investors have digested developments in the case.
Lenders have been grappling with the fallout of a shock court judgment in October that vastly expanded a Financial Conduct Authority investigation into motor finance commissions and sent compensation estimates soaring.
The landmark ruling determined that paying a “secret” commission to car dealers who had arranged the loans without disclosing the sum and terms of that commission to borrowers was unlawful.
