 reported on Wednesday its highest full-year profit in a decade, suggesting its recovery from its past scandal could){kind=link}
Lloyds Bank (LON:LLOY) reported on Wednesday its highest full-year profit in a decade, suggesting its recovery from its past scandal could be drawing to an end.
Pre-tax profits surged by 158 percent to 4.2 billion pounds in 2016, compared to 1.6 billion pounds recorded the same time a year earlier.
Lloyds revealed it spent 2.1 billion pounds on conduct charges including one billion on PPI. This was less than the bank had predicted and much less than the four billion pounds it paid out for PPI back in 2015.
“Our performance is inextricably linked to the health of the UK economy which has been more resilient than the market expected post-referendum,” the bank said in a statement.
The profit is a positive sign for the British government as it hopes to return Lloyds to full private ownership before May this year after the bank was rescued in a 20.5 billion pound taxpayer bailout during the 2008 financial crisis.
The banking group boosted its staff bonus pool by 11 percent to 392 million pounds as a response to the increased profit.
“We have delivered strong financial performance in 2016 as we continue to make good progress against our strategic priorities.” said Lloyds Banking Group chief, Antonio Horta-Osorio.
“Strong capital generation has enabled us to increase our ordinary dividend by 13 percent, pay a special dividend and fully cover the expected capital impact of the MBNA acquisition. As a simple, low risk, UK focused bank we are committed and well positioned to help Britain prosper and become the best bank for customers and shareholders.” he added.
Unlike many of its competitors, Lloyds is much more UK focused and the impact of Brexit is not yet known.
“The UK’s decision to leave the European Union means the exact nature of our relationship with Europe going forward remains unclear and the economic outlook is uncertain,” Mr Horta-Osório said.
”However, the recovery in recent years with low unemployment, reduced levels of household and corporate indebtedness and increased house prices means the UK is well positioned,“