Lloyds see pre-tax profit surge

Lloyds Banking Group’s pre-tax profit more than doubled last year, in a results statement that showed group profits increased 158 percent.

Lloyds see pre-tax profit surge

The group’s pre-tax profit hit £4.2bn in 2016, compared to £1.6bn in 2015, which the bank said had been helped by lower provisions in payment protection insurance (PPI).

The provisions for 2016 were significantly lower in 2016 than 2015, dropping from £4bn to £1bn, bringing the total amount to £17bn.

Bad debt levels in consumer lending across the year are also given in the full results.

The announcement states that Lloyds had written off £282m of consumer finance loans in 2016 compared to £235m in 2015.

These ‘consumer finance loans’ included motor finance, credit cards and unsecured personal loans.

For the full year 2016 the group had a total value of £745m impaired consumer finance loans, compared to £910m for 2015 – about an 18 percent decrease.

UK motor finance lending increased from £9.5bn in 2015 to £11.4bn last year – a total increase of 20 percent.

Credit card lending also increased from £9.3bn in 2015 to around £17bn in 2016 following the acquisition of MBNA.

Without the added value from the acquisition, the 2016 figure would have only reached £9.7bn.

Casting his opinion on Brexit, António Horta-Osório, group chief executive of Lloyds, said: “The UK’s decision to leave the European Union means the exact nature of our relationship with Europe going forward remains unclear and the economic outlook is uncertain.

“However, the recovery in recent years with low unemployment, reduced levels of household and corporate indebtedness and increased house prices means the UK is well positioned.”