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| Version 4 | Version 5 |
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| Lloyds profits fall on PPI claims | Lloyds profits fall on PPI claims |
| (about 1 hour later) | |
| Lloyds Banking Group has reported a 7% fall in annual pre-tax profits to £1.6bn compared with £1.8bn a year earlier. | Lloyds Banking Group has reported a 7% fall in annual pre-tax profits to £1.6bn compared with £1.8bn a year earlier. |
| The bank increased provisions for payment protection insurance (PPI) compensation in the year to £4bn. | The bank increased provisions for payment protection insurance (PPI) compensation in the year to £4bn. |
| That was after the City watchdog said it was considering a deadline on compensation claims. | That was after the City watchdog said it was considering a deadline on compensation claims. |
| Lloyds shares are up 12% in afternoon trading, making the bank the biggest riser on the FTSE 100. | Lloyds shares are up 12% in afternoon trading, making the bank the biggest riser on the FTSE 100. |
| Lloyds Banking Group has faced the largest amount of PPI compensation claims. The new provisions takes the total the bank has set aside to pay compensation to £16bn. | Lloyds Banking Group has faced the largest amount of PPI compensation claims. The new provisions takes the total the bank has set aside to pay compensation to £16bn. |
| The bank said it welcomed "the decision of the Financial Conduct Authority to consult on a deadline for PPI complaints and the certainty that this will bring for both customers and shareholders". | The bank said it welcomed "the decision of the Financial Conduct Authority to consult on a deadline for PPI complaints and the certainty that this will bring for both customers and shareholders". |
| The FCA has proposed a time bar that will allow people to claim compensation for mis-sold PPI until 2018 before drawing a line under the affair. | The FCA has proposed a time bar that will allow people to claim compensation for mis-sold PPI until 2018 before drawing a line under the affair. |
| 'Strong start' | 'Strong start' |
| The bank also said it incurred a charge of £837m relating to complaints about packaged bank accounts and "a number of other product rectifications primarily in retail, insurance and commercial banking". | The bank also said it incurred a charge of £837m relating to complaints about packaged bank accounts and "a number of other product rectifications primarily in retail, insurance and commercial banking". |
| The bank, which restarted dividend payments to shareholders last year after a six year break, announced it would pay shareholders an ordinary dividend of 2.25p per share, plus a special dividend of 0.5p giving a total payout to shareholders of £2bn. | The bank, which restarted dividend payments to shareholders last year after a six year break, announced it would pay shareholders an ordinary dividend of 2.25p per share, plus a special dividend of 0.5p giving a total payout to shareholders of £2bn. |
| Lloyds Banking Group chief executive, Antonio Horta-Osorio said: "We made a strong start in 2015 to the next phase of our strategy and have delivered a robust financial performance, enabling increased dividend payments." | Lloyds Banking Group chief executive, Antonio Horta-Osorio said: "We made a strong start in 2015 to the next phase of our strategy and have delivered a robust financial performance, enabling increased dividend payments." |
| The bank announced he had been awarded a deferred bonus of 723,977 shares and his salary had risen by 6% to £1.3 million. | The bank announced he had been awarded a deferred bonus of 723,977 shares and his salary had risen by 6% to £1.3 million. |
| 'Worst is over' | 'Worst is over' |
| Ian Gordon, an analyst at Investec, said today's results suggested that "the storm clouds are really clearing at last." | Ian Gordon, an analyst at Investec, said today's results suggested that "the storm clouds are really clearing at last." |
| He said investors were now looking at Lloyds as "an increasingly safe, but boring, regular bank with with little or no balance sheet growth but a strong outlook for further dividend growth." | |
| And market analyst, Michael Hewson of CMC Markets said the share price was also boosted by the perception that the payouts for PPI were coming to an end. | And market analyst, Michael Hewson of CMC Markets said the share price was also boosted by the perception that the payouts for PPI were coming to an end. |
| "It really does seem the worst is behind us and that there can't be much more left to pay out for customers mis-sold these policies." | "It really does seem the worst is behind us and that there can't be much more left to pay out for customers mis-sold these policies." |
| Paying out a dividend, despite the fall in profits, he said, was a sign of confidence from the bank's management. | Paying out a dividend, despite the fall in profits, he said, was a sign of confidence from the bank's management. |
| The bank's annual results come a month after the Treasury announced it was postponing plans for a sale of Lloyds' shares to retail investors worth £2bn until global stock market volatility had eased. | The bank's annual results come a month after the Treasury announced it was postponing plans for a sale of Lloyds' shares to retail investors worth £2bn until global stock market volatility had eased. |
| The government, which held 43% of Lloyds after its rescue in 2008 has reduced the taxpayer's stake in the bank to around 9% now. | The government, which held 43% of Lloyds after its rescue in 2008 has reduced the taxpayer's stake in the bank to around 9% now. |