0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 2 free articles

We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

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.

Amber-Ainsley   Pritchard

Share on LinkedInShare on Twitter
Amber-Ainsley   Pritchard
Share on LinkedInShare on 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.”


Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk 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