London — Lloyds Banking Group (LBG) announced soaring annual profits on Wednesday on lower charges linked to an insurance scandal, as it awaits a full return to the private sector following a state bail-out. Net profit surged more than four times to £2bn in 2016 compared with net profit of £466m in the year-earlier period, LBG said in an earnings release. "We have delivered strong financial performance in 2016 as we continue to make good progress against our strategic priorities," group CE Antonio Horta-Osorio said in the statement. LBG said it took another £1bn hit to compensate customers who were mis-sold insurance, although this was much reduced compared with a bill of £4bn in 2015 regarding the same issue. Lloyds’ compensation for mis-sold payment protection insurance (PPI) now totals more than £17bn — far more than other British banks caught up in the long-running scandal. In 2011, British banks lost a high court appeal against tighter regulation of PPI, which provides insuranc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.