Lloyds sees profits drop £1.5m due to PPI claims

A UK bank has reported that it saw profits drop a third in 2019.

Lloyds announced today that its profit after tax was £3,006m – a 33 per cent drop from 2018’s £4,506m.

However, it said that some of the decrease was due to PPI compensation costs, which totalled nearly £2,450m.

Despite the profit drop, the company stated that its financial results were ‘solid’ and that it is making strategic progress.

António Horta-Osório, chief executive for Lloyds, commented: “In 2019 the group has continued to make significant strategic progress while delivering solid financial results in a challenging external market.

“The group’s statutory performance was impacted by a substantial PPI charge related to the deadline for claims submission.

“Underlying performance was resilient, reflecting the health of our customer franchise and the strength of the business model.

“The group’s purpose is to help Britain prosper, underpinned by being the bank with the largest retail and commercial presence throughout the UK.

“In 2019 we helped around 23 per cent of first time buyers by lending £13.8bn while also achieving our target of lending £18bn to businesses across the UK.

“We have also targeted reducing the emissions we finance by more than 50 per cent by 2030, in line with the UK’s Net Zero Goal and the Paris Agreement.

“Given our clear UK focus, our performance is inextricably linked to the health of the UK economy.

“Throughout 2019, UK economic performance has remained resilient in the face of significant political and economic uncertainty, supported by record employment, low interest rates and rising real wages.

“Although uncertainty remains given the ongoing negotiation of international trade agreements, there is now a clearer sense of direction and some signs of an improving outlook.

“We remain well placed to help Britain prosper, support our customers and deliver strong and sustainable returns for shareholders.”

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