Lloyds bank posts 2012 losses, but awards staff bonuses
Britain's state-rescued Lloyds bank on Friday posted a 2012 net loss of £1.427 billion ($2.16 billion, 1.66 billion euros) , rocked by huge compensation for insurance mis-selling, but awarded its boss and staff a large round of bonuses.
The loss after taxation, equivalent to $2.165 billion or 1.657 billion euros, compared with a shortfall of £2.787 billion in 2011, Lloyds said in a statement.
Pre-tax losses were meanwhile slashed to £570 million, from £3.542 billion last time around.
However in the fourth quarter, LBG set aside another £1.5 billion to cover compensation for mis-selling payment protection insurance, taking its annual provision to a vast £3.575 billion. The total bill now stands at £6.775 billion.
Lloyds added that it has also set aside £400 million to compensate clients who were mis-sold interest rate hedging products.
Separately, the lender announced that chief executive Antonio Horta-Osorio would receive a 2012 performance bonus of £1.485 million that will be deferred until 2018 and dependent on its share price level.
Lloyds added that its staff would also share a total bonus pot of £365 million despite the fresh annual losses. That was three percent lower than the previous year.
The bank is 39-percent owned by the British taxpayer after a vast bailout at the height of the global financial crisis.
"The substantial progress we made in 2012 means that we are now ahead of our plan to transform the group, and this was reflected in our stronger underlying financial performance in the year," said Horta-Osorio in the results statement.
"Since setting out our strategy in June 2011, we have significantly strengthened the balance sheet, and substantially improved efficiency and focus, while continuing to work through legacy issues.
"We are investing in our simple, lower-risk, customer-focused UK retail and commercial banking model, and in value-for-money products and better capabilities to continue to support UK households, businesses and communities.
"We are creating a business of which customers and colleagues can be proud, and which I am confident will help Britain prosper, and deliver strong, stable returns to shareholders."
© 2013 AFP