Lloyds Banking Group has today reported full-year profit below expectations, weighed down by money it set aside for potential consumer redress in relation to a motor finance probe.
Britain’s biggest mortgage lender reported a pretax profit of £5.97 billion for 2024, compared to £7.5 billion a year ago.
Analysts were expecting profit of £6.39 billion, according to a company-compiled consensus.
Lloyds said it recognised remediation costs of £899m in 2024, sharply up from £675m a year ago.
It set aside £700m in relation to the potential impact of British regulators’ probe into historic mis-selling of motor finance by banks, after setting aside £450m in the previous year.
The bank said it would pay a total dividend of 3.17 pence per share for 2024, up from 2.76 pence a year ago, but below analysts’ expectations of 3.26 pence according to data compiled by LSEG.
Lloyds also announced a share buyback of £1.7 billion, as it continues to pay out excess capital towards its target of a core capital ratio of around 13% by the end of 2026.
