An additional £700 million provision taken in the final three months of the year adds to the £450 million already confirmed last year.
Lloyds Bank has set aside £1.2 billion to cover potential compensation payouts related to its motor finance commission practices, following a court judgment in October that ruled it unlawful for car dealers to receive commissions without customers' informed consent. The bank reported a 20% drop in annual profits, with a pre-tax profit of £6 billion for 2024, below analysts' expectations. Lloyds, which has a market cap of around £38 billion, emphasized that significant uncertainty remains regarding the final financial impact and welcomed an upcoming Supreme Court hearing in April. The Black Horse brand, a major player in the UK car finance market, is central to the issue, which could lead to further consumer complaints about potential mis-selling of car finance in previous years.
