Lloyds has revealed it has set aside £1.2 billion to cover potential compensation costs for motor finance commission arrangements, as the bank’s annual profit slid by a fifth.
In its annual results, Lloyds reported a pre-tax profit of £6 billion for 2024, a fifth lower than the £7.5 billion generated the prior year, and coming in below analysts’ expectations.
An additional £700 million provision taken in the final three months of the year adds to the £450 million already confirmed last year.
Lloyds said that “clearly significant uncertainty remains around the final financial impact” and that it welcomes the outcome of a Supreme Court hearing set for April.
Lloyds said the extra £700 million provision was taken in light of a court judgment on the issue in October.
