Lloyds spent £2.1 billion on conduct charges in 2016 while profit and income dropped

Lloyds Banking Group reported a drop in underlying profits and income for 2016 as well as a huge £2.1 billion spent on conduct charges. 

The partly taxpayer owned bank said in its results that it is focusing on being a low risk model bank.

“We have delivered strong financial performance in 2016 as we continue to make good progress against our strategic priorities. Underlying profit was £7.9 billion and statutory profit has more than doubled to £4.2 billion. We continue to improve our customers’ experience, simplifying the business whilst growing in targeted areas and in December announced the acquisition of MBNA’s prime UK credit card business,” said António Horta-Osório, CEO of Lloyds Banking Group in a statement.

“Strong capital generation, which is a consequence of our business model, has enabled us to fully cover the expected capital impact of the MBNA acquisition, increase our ordinary dividend by 13 per cent and pay a special dividend. As a simple, low risk, UK focused bank we are committed and well positioned to help Britain prosper and become the best bank for customers and shareholders.”


In the financial results there was no mention of how the bank was viewing Brexit or on reports about it selecting a European base, in the event of Britain splitting from the European Union.

On February 14, a report claimed that Lloyds was close to selecting Berlin as a European base to secure market access to the European Union when Britain leaves the bloc.

The report said that it is currently examining steps to turn its branch in the German capital into a subsidiary and may apply for a licence to do so later this year.

This story is developing … 


NOW WATCH: This is why Wall Street is able to stay one step ahead of federal investigations

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.