In its annual results, Lloyds Bank Group has reported a pre-tax profit of £5.97bn for 2024, a fifth below the £7.5bn posted the prior year, and also undershooting analysts’ forecsasts.
Underlying loans and advances to customers increased by £9.4bn in the year, including £2.1bn in the fourth quarter, to £459.1bn. The increase in the year was led by UK mortgages growth of £6.1bn.
Commenting on the results Lloyds group chief executive Charlie Nunn said: “The group delivered a robust financial performance in 2024. Pleasingly and as expected, income grew in the second half of the year, supported by a rising banking net interest margin and momentum in other income.”
Lloyds revealed it had set aside £1.2bn to cover potential compensation costs for motor finance commission arrangements, the banking group owns the brand Black Horse, a major car finance provider in the UK.
An additional £700m provision taken in the final three months of the year is in addition to the £450m confirmed previously.
This along with lower total income and higher business expenses were identified as key factors in the profits slide.
Earlier this week HSBC said it grew UK home loans by $4.6bn (£3.7bn) from a year ago, edging up its share of the mortgage market.
The high street bank lifted its UK home loans share to 8.1% from 8%, adding in its annual report that it saw, “the opportunity to continue building our mortgage franchise”.
