Lloyds Banking Group has shrugged off Brexit considerations because it reported a 13% rise in annual income – however warned of an unsure short-term outlook for the UK.
The lender additionally put apart an extra £200m to cope with the continuing concern of Fee Safety Challenge (PPI) mis-selling claims.
Its feedback on Brexit, weeks forward of a potential no-deal departure from the European Union, observe warnings from HSBC and Royal Financial institution of Scotland.
The group, which owns Halifax and Financial institution of Scotland in addition to Lloyds Financial institution, reported a pre-tax revenue of £5.96bn for 2018, up from £5.28bn the yr earlier than.
It additionally introduced plans to return £4bn to buyers by way of a hike in its dividend and share buyback. Shares have been up nearly 5% by the top of buying and selling.
Chief govt Antonio Horta-Osorio stated the financial institution’s efficiency was “inextricably linked to the well being of the UK financial system”.
He stated Britain had “confirmed itself to be resilient with report employment and continued GDP progress” however acknowledged uncertainty forward.
Mr Horta-Osorio added: “While the near-term outlook for the UK financial system stays unclear, notably given the continuing EU withdrawal negotiations, our technique will proceed to ship for our clients.”
Lloyds stated its further provision for PPI took its complete put aside for the yr to £750m.
The most recent sum was added as criticism volumes rose to 13,000 per week forward of an business deadline of August 2019.
General, it has now taken costs amounting to £19.4bn over the price of compensating clients for the mis-selling scandal.
Russ Mould, funding director at AJ Bell, stated the financial institution’s outcomes have been barely wanting expectations however that executives have been doing a very good job of restoring its strong pre-crisis status.
Nevertheless, he added that there have been “clear causes for not getting carried away”.
“Lloyds’ home focus leaves it notably delicate to the eventual consequence from a Brexit course of which remains to be mired in uncertainty,” Mr Mould stated.
“If a no-deal consequence have been to result in a hunch within the financial system then this might end in a rise in unhealthy money owed with the enterprise arguably much more uncovered following its acquisition of bank card enterprise MBNA in 2017.”