The Lloyds Banking Group collection recorded a 20 percent decrease in annual profits before taxes for 2024, the loss of the city's expectations amid high costs and one -time fee linked to the continuous kinetic finance committee scandal.
FTSE 100 lending a profit of 5.97 billion pounds in the past year, a decrease of 7.5 billion pounds in 2023 and less than the expectations of analysts of 6.4 billion pounds.
Lloyds income has been nullified through a less net interest margin – the difference between benefits revenues from lending and financing costs – in a low rate environment. The bank has also received fees and heavier in the field of weakness, including 700 million pounds linked to disputes over unannounced or “partially disclosed” committees in car loans.
This last group of the total judgment of the lender is linked to a possible potential funding compensation to 1.15 billion pounds, although Lloyds warned that there is still “great lack of certainty” on the final result. The charge is linked to the ruling of the Court of Appeal, which includes three consumers-the junction key, Johnson and Hopccraft-which challenged the responsibility of the lenders when credit brokers such as car dealers arrange a rental agreement but they fail to completely reveal the details of the committee.
Charlie Nun, CEO of LLOYDS, noted that the Appeal Court of 700 million pounds, which exceeds the scope of review of the original FCA for auto finance.
Despite these opposite winds, LLOYDS reported 10.2 billion pounds in last year to 459.9 billion pounds, as real estate loans in the United Kingdom increased by 6.1 billion pounds. The deposits grew by 11.3 billion pounds to 482.7 billion pounds, reflecting the strong customer confidence in the largest street in the United Kingdom. Encouraging, Lloyds also revealed an improvement in the economic view, supported by the growth of the last homes and more suggestion of risk such as inflation and the fluctuation of interest rates.
According to Matt Britzman, Senior Stock Analyst in Hargreaves Lansdown, the additional £ 700 million has “cloudy” that was in the fourth strong quarter. Nevertheless, Brezqan highlighted that “Lloyds managed to improve the quality of the loan throughout the year, challenging the fears that borrowers will confuse under the pressure of persistent inflation.”
Despite the profit missed, the bank’s share price has increased by more than 40 percent over the past 12 months, reflecting the optimistic expectations of the sector in general and fixed performance away from engines financing fees.
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