Lloyds sets aside another £700mn after car finance probe

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The Lloyds Banking Group as a result of an inquiry and separated the ruling of the related court to separated an additional £ 700MN for the possible mistake of the car finance loans.

Lloyds The provision was announced on Thursday along with the results of his fourth-thirteenth. The bank posted the statutory profit before the $ £ 824 million in the final quarter of the year, below the market expectations of £ 1.2bn and lower than £ 1.8bn the previous year.

Higher-road NDD has recorded a return on clear equity-the original measurement of the profit-12.3 percent for the year, it is below the target of 13 percent. The quarterly earnings have increased to £ 4.4 billion, a bit above the expectation of £ 4.3bn.

Lloyds already booked a $ 450 million provision last year to spend the incorrect sale of possible cars after the Financial Conduct Authority began investigating the LOANS LOANS.

However, analysts have since raised a possible injury to the UK’s banking sector, the court has ruled that it was illegal to provide any commission to any commission given to the car dealers without the consent of the customers.

This decision encouraged Lloyd’s Chief Executive Charlie Nan to warn Nan about one “Investment Problems” On behalf of the UK, and banks have heard the appeal in April, the government is pushing the government to intervene to protect economic growth. However, a panel of judges on Monday blocked the treasury request for intervention in the case.

The costs of cars finance have become an unnecessary confusion because the activities of Lloyds have entered the final end of £ 4 billion investment plans to modernize the activities of Lloyds and less closely associated with interest rates.

Lloyds has also stressed through the introduction of “branch sharing” for its three brands of customers: the Bank of Scotland, Halifax and Lloyds. NDDer also said this year that it would be Turn off the two offices On Liverpool and Danormline. It is also reviewing hundreds of work as part of an attempt to digitalize its activities.

Lloyds’ net interest margin – the difference between the interest on Loans and the rate that it gives it on the customer’s deposit – the fourth quarter increased by 2.7 percent; Increase from 2.5 percent of the previous quarter, which benefited from the so -called structural hedge, which protects it from reduced interest rates.

The group says that it is “extremely committed to the shareholder distribution” despite the car finance hit, and has announced plans to award shareholders with the final dividend of 2.5 per share per share. It also says that it is planned to buy up to £ 1.7bn of its own shares.