|Lloyds chief pockets £1.7m bonus, staff share £395m in bonuses despite losses
Britain's state-rescued bank Lloyds said it cut net losses in 2013 and ramped up staff bonuses, but performance was hit by a vast mis-selling compensation bill.
Losses after tax stood at £838 million last year, compared with a net loss of £1.471 billion in 2012, Lloyds Banking Group said in London today, AFP reports.
The lender took a vast provision of £3.5 billion, primarily relating to compensation for customers who were mis-sold payment protection insurance.
Earlier this month, the bank had already warned that it would take an extra hit of almost £2 billion to cover mis-selling claims.
Lloyds, which is 33-percent owned by the taxpayer after a bailout at the height of the global financial crisis, added that revenues dipped slightly to £18.5 billion in 2013.
Underlying profit more than doubled to about £6.2 billion, in line with previous guidance, as it was boosted partly by asset sales as part of its ongoing restructuring.
Lloyds added that chief executive Antonio Horta-Osorio was in line for a deferred shares bonus of £1.7 million for 2013. The lender also lifted its staff bonus pool by 8 percent to £395 million.
“Over the last three years we have reshaped, strengthened and simplified our business to create a low-risk efficient retail and commercial bank that is focused on our customers and on helping Britain prosper,'' Horta-Osorio said in the earnings release.
“These results, with group underlying profit more than doubled to 6.2 billion, confirm that the group is returning to robust health, thanks to the commitment of our people and the consistent execution of the strategy we set out in June 2011.''