Lloyds FY profit soars, puts aside £450m for motor finance probe

(Sharecast News) - Lloyds Bank on Thursday reported a 57% jump in full-year profits and announced another £2bn share buyback, but also set aside £450m for the regulatory probe into UK motor financing. Pre-tax earnings at the lender for the year to December 31 were £7.5bn, although profits in the fourth quarter slipped 4% due to mortgage pricing and deposit mix headwinds. Net income rose 3% to £17.9bn.

Lloyds net interest margin - the difference between what it charges for loans and pays out on savings - rose 17 basis points to 3.11%.

The full-year dividend was lifted 15% to 2.76p a share.

Reporting by Frank Prenesti for Sharecast.com