10:57 01 March 2013
Lloyds Banking Group has reported a £570million loss for last year it emerged on Friday, 1st March. This figure however, is far less compared to the figure for 2011, where the banking group suffered a £3.5billion loss for the year.
One reason for the figure for 2012 may relate to the group allocating funds to mis-selling.
Lloyds dedicated around £1.9billion extra for this. Also, an amount of approximately £1.5billion was put to one side to cover the mis-selling of payment protection insurance (PPI).
Further to this, the company assigned £400million to compensate small businesses with regards to mis-selling.
With this comes the news that Lloyd’s Chief Executive Antonio Horta-Osorio is to expect a bonus of £1.5million. The bonus will be dealt out via shares after five years, but it is understood it will only be received if certain conditions are met.
This relates to whether shares are maintained at 73.6 pence for a length of time, or if 33per cent of the government’s stake is sold at a profit.
The government own up to 40per cent of Lloyds Banking Group following the economic crisis that occurred in 2008, where the government helped the bank with costs.
The bank was formed one year after this when HBOS and Lloyds TSB came together.
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