UK mortgage lender Lloyds Banking Group Plc Bank on Thursday said annual profit fell 20.4%, worse than expected, and said it had set aside an extra £700m to cover potential claims against motor finance commission deals.
Pre-tax profit came in at £5.97bn, compared to £7.5bn a year earlier and consensus estimates of £6.39bn. Net interest margin - the difference between savings and loan rates - fell 16 basis points to 2.95%.
Underlying net interest income of fell 7% to £12.8bn reflecting falling interest rates.
Lloyds has set aside £1.15bn for motor finance claims, including £450m from 2023, which is its "best estimate" of the potential impact pending a Court of Appeal hearing in April about the scope of a review into the scandal.
Reporting by Frank Prenesti for Sharecast.com