Lloyds boosted by lower PPI payments

Lloyds Bank exteriorImage copyright
Reuters

Lloyds Banking Group has reported a 158% increase in annual pre-tax profits to £4.24bn as a result of a reduction in payment protection insurance (PPI) provisions.

Provisions for PPI declined from £4bn to £1bn.

However, underlying profits fell to £7.9bn, down from £8.1bn.

The UK government’s stake in Lloyds has now fallen below 5% and it has said it wants to return the bank to full private ownership this year.

On Tuesday HSBC reported a $7.1bn (£5.7bn) pre-tax profit for 2016, down 62% on the $18.9bn reported a year earlier.

The government spent £20.3bn to acquire a 43% stake in Lloyds at the height of the financial crisis.

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