Lloyds sees its pre-tax profit surge 158%, as bad debt levels drop

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

LinkedIn Twitter

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.”

LinkedIn Twitter

Cabot expects IPO to go ahead in November

Debt purchaser Cabot Credit Management has today (October 20) confirmed final plans to float on the London Stock Exchange

Revealed: The CCS Awards 2017 shortlist

The shortlist for the Collections & Customer Service (CCS) Awards 2017, which will return to the Midland Hotel in Manchester on November 22, has been revealed

Provident unveils details of major recovery plan

Provident Financial has set up a recovery plan to re-establish relationships with customers, stabilise operations and improve its collections performance

Entries open for the Credit Awards 2018

Entries are now open for The Credit Awards 2018, which will celebrate its 19th year at the Grosvenor House Hotel on Park lane next May

The CS Interview

Renaissance man
LinkedIn Twitter

Renaissance man


Five things the TRI Conference taught us about today’s economy
LinkedIn Twitter

Five things the TRI Conference taught us about today’s economy


"It’s up to the financial services industry to help teach students the necessary skills to manage their finances"
LinkedIn Twitter

"It’s up to the financial services industry to help teach students the necessary skills to manage their finances"


Lloyds results reveal £2bn of debt in forbearance
LinkedIn Twitter

Lloyds results reveal £2bn of debt in forbearance

Upcoming events

Mortgage Conference 2017

F5 Conference 2017

Commercial Finance Conference 2017

The Corporate M&A Exchange 2017

Credit Strategy

Did you find our website useful?

Thank you for your input

Thank you for your feedback – an online news and information service for the UK’s commercial and consumer credit industry. is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group