Lloyds Banking Group said annual profits rose by more than 50% due to higher borrowing costs, but the company said it had cut its annual profit by more than 50% to cover the potential costs of a major overhaul of its historic car finance sales practices. He said he had secured £50m.
The banking group announced pre-tax profits of £7.5bn in 2023, up 57% from £4.8bn in 2022 and beating analysts' expectations.
This was achieved as underlying net interest income, the difference between loan income and deposit payments, increased by 5% to £13.8bn.
But the bank said it had set aside £450m of remediation costs to cover potential costs related to the financial regulator's investigation into its historic car financing sales practices.
Last month, the Financial Conduct Authority (FCA) launched an investigation into whether it could be held liable for high car loan claims.
Lloyds chief executive Charlie Nunn said: “In 2023, the Group remains focused on proactively supporting people and businesses through sustained cost-of-living pressures, while funding their ambitions and growth.
“This is a significant step forward in our strategy, delivering increased shareholder returns, guided as always by our core purpose of supporting Britain’s prosperity.”
