Lloyds Banking Group reported statutory profit after tax of £4.5 billion for the full year 2024, a decline of 19% against the prior year, as results were weighed down by a provision related to motor finance commission arrangements and higher remediation charges, the bank disclosed in its full-year results on 20 February 2025. Statutory profit before tax fell 20% to £5.97 billion, with earnings per share dropping to 6.3 pence from 7.6 pence in 2023, and the net interest margin stood at 2.95% for the period.
Underlying profit for the year came in at £6.3 billion, a measure that is stated after £899 million of remediation charges, including the £700 million motor finance provision, but before restructuring costs and volatility items. Net income declined 5% to £17.1 billion, with net interest income of £12.8 billion, down 7%.
MOTOR FINANCE PROVISION
The provision relates to historical commission arrangements between lenders and car dealers that are under scrutiny from the Financial Conduct Authority.
Remediation charges beyond the motor finance provision also added to the gap between underlying and statutory profit outcomes. Underlying other income rose 9% to £5.6 billion, driven by strengthening customer and market activity and the benefit of strategic initiatives.
DIVIDEND AND CAPITAL
Despite the statutory profit decline, the Lloyds board recommended a final ordinary dividend of 2.11 pence per share, taking the total ordinary dividend for 2024 to 3.17 pence per share, an increase of 15% on the prior year's distribution. The increase is in line with the group's progressive and sustainable ordinary dividend policy. The Common Equity Tier 1 ratio was 13.5% on a pro-forma basis.
Total capital returns in respect of 2024 amount to up to £3.6 billion, comprising the ordinary dividend and a newly announced share buyback programme of up to £1.7 billion.