Lloyds reports full-year loss

1 March 2013

Lloyds Banking Group has reported a full-year loss for 2012, with payment protection insurance (PPI) mis-selling playing a significant role in this movement.

The losses, however, narrowed to £570 million from the £3.5 billion posted the previous year - and the bank, which is the biggest mortgage lender in the UK, explained 2012's losses were mainly due to making provisions for PPI.

It was revealed that in the fourth quarter alone, the financier set aside £1.5 billion for PPI compensation payments.

When considered from an underlying basis that does not include PPI provisions and other one-off items, the bank's profits climbed to £2.6 billion, which is more than quadruple the level reported one year earlier.

In Lloyds' annual results statement, chief executive of the group Antonio Horta-Osorio said: "The substantial progress we made in 2012 means that we are now ahead of our plan to transform the group."

He added this improvement was reflected in the bank's improved underlying performance for last year.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development