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Lloyds’ lending growth stalls in ‘highly competitive’ market


Lloyds Banking Group says its lending growth was hampered last year by its decision to focus on “protecting margin in a highly competitive low growth environment”.

It annual results, published today, show lending increased just 1 per cent year-on-year to around £40.5bn in 2015. This is a marked difference from 2014, when lending grew 13 per cent year-on-year.

The bank reported an 11 per cent drop in pre-tax profits, from £1.8bn in 2014 to £1.6bn, after it set aside £4bn for missold payment protection insurance.

Of Lloyd’s total £4bn PPI provision, £2.1bn was set aside between October and December, after the FCA set out plans to impose a deadline for consumers to bring PPI complaints. Consumers are likely to have at least until spring 2018 to complain.

The Government’s stake in Lloyds has fallen to around 9 per cent. Lloyds also incurred a cost of £745m in it sale of TSB to Spanish bank Banco Sabadell. Lloyds was forced to sell off TSB by the EU following the state aid the bank received during the financial crisis.

Lloyds has reduced its total bonus pool by £30m after the bank was fined a record £117m in June over failings in the way it handled PPI complaints.

Chief executive Antonio Horta-Osorio has been handed a total pay package worth £8.8m.

He says: “We made a strong start in 2015 to the next phase of our strategy and have delivered a robust financial performance, enabling increased dividend payments.

“We remain confident in our ability to become the best bank for customers and shareholders, while continuing to support the economy and helping Britain prosper.”



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