You are using an older browser version. Please use a supported version for the best MSN experience.

Lloyds posts bumper $A6.8b profit

Press Association logoPress Association 22/02/2017

Britain's Lloyds Banking Group has posted annual pre-tax profits of STG4.24 billion ($A6.89 billion), more than double the STG1.64 billion reported for 2015.

Wednesday's profit result comes after Lloyds last October set aside a further STG1 billion to meet compensation claims for the mis-selling of payment protection insurance (PPI).

The UK lender has been the worst affected by the PPI scandal.

Lloyds - in which the UK government holds less than five per cent - says its performance is "inextricably linked to the health of the UK economy, which has been more resilient than the market expected post (Brexit) referendum".

A remuneration report released by Lloyds also shows that chief executive Antonio Horta-Osorio's total pay package was cut from STG8.7 million in 2015 to STG5.5 million last year.

The reduction is due to a cut in his long-term shares award following the Brexit vote, which hit the company's stock.

But the Portuguese saw his short-term bonus rise from STG850,000 to STG1.2 million.

His base salary will increase by 8 per cent in 2017 to STG1.2 million, the first raise since he joined in 2011.

The group increased its total bonus pool to STG392.9 million from STG353.7 million.

Chairman Lord Blackwell said: "Our approach to reward aims to provide a clear link between remuneration and delivery of the group's key strategic objectives, namely, becoming the best bank for customers whilst delivering long-term, superior and sustainable returns to shareholders."

More From Press Association

image beaconimage beaconimage beacon