Lloyds Banking Group annual profits soar to £4.24bn

Lloyds Banking Group has cheered a strong performance in 2016 as it revealed annual profits more than doubled to £4.24 billion.

The taxpayer-backed lender said bottom line profits surged last year from the £1.64 billion reported in 2015 as it saw lower costs of compensation for the payment protection insurance (PPI) scandal.

Lloyds - in which the Government has less than 5% after selling down its stake - said its performance was "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 £8.7 million in 2015 to £5.5 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. The incentive payout fell from £5.18 million in 2015 to £1.58 million last year.

But the Portuguese saw his short-term bonus rise from £850,000 to £1.2 million.

His base salary will increase by 8% in 2017 to £1.2 million, the first raise since he joined in 2011.

The group increased its total bonus pool to £392.9 million from £353.7 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.

"The awards announced today recognise our further progress against our strategic objectives. The progressive return of the group to private ownership, the resumption of dividends since 2014 and our strong capital and balance sheet position are testament to the hard work of all colleagues to transform and simplify our business."

More in this Section

US confirms talks on trade deal with Britain to begin immediately after Brexit

Monitor shows Irish women more likely to start a business than most of their EU counterparts

Google to charge device makers a fee for access to key Android apps in the EU

Index shows weak growth in consumer spending prior to Budget

Breaking Stories

Cork Film Festival launches 2018 programme of 250 films

How to make Prue Leith’s ‘almost Thai’ fish cakes

Could this be the most spiritual retreat in Vietnam?

What’s it like to stay in Richard Branson’s favourite Balearic retreat?

More From The Irish Examiner