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The LLOYDS Banking Group has allocated an additional group of 700 million pounds to cover the repercussions of the investigation and the relevant court ruling regarding the sale of historical cars.
Lloyds announced the ruling on Thursday, along with the results of the fourth quarter, which showed legal profits before a tax of 824 million pounds in the last quarter of the year, without the market expectations of 1.2 billion pounds and reduced £ 1.8 billion in the previous year.
The bank’s return on concrete property rights – a main measure of profitability – was 12.3 percent for the whole year, less than its 13 percent target. The quarterly revenue increased in the previous year to 4.4 billion pounds, slightly higher than the expectations of 4.3 billion pounds.
A return on concrete property rights expects about 13.5 percent next year and maintained their directives for 2026. The shares in Lloyds increased by 4 percent in morning trading.
Lloyds has already booked a item of 450 million pounds last year to cover the costs of potential cars’ bad -selling, after the Financial Conduct Authority began achieving the “estimated committee arrangements”, where car agents received larger commissions to charge higher interest rates on auto financing loans.
This practice was banned by FCA in 2021, current investigations and legal provisions related to historical issues.
Analysts have increased their estimates on car financing sales costs after the October Court of Appeal ruled that it is illegal for banks to pay any commission for car dealers if customers did not give an informed approval.
The Appeals Court Resolution. It appears that it is at odds with 30 years of the organization, and this creates a problem in the minds of investors. Charlie Nun, CEO of Lloyds, said: “Not only is for the financial services sector, but in fact a wider issue of investment in the United Kingdom. “.
The banks were pushing the government to intervene when the Supreme Court heard an appeal in April. But a committee of referees on Monday refused the treasury request to do so.
Car financing costs were an unwitness distraction as LLOYDS entered the final extension of an investment plan of 4 billion pounds. It aims to update its operations and expand the markets such as wealth management that provides more fee and closely related to interest rates.
Financial director William Chalmers said that the uncertainty about the cost was linked to the rule of the Supreme Court, which is the structure of any compensation plan and customer responses.
Lloyds said in her annual report that she continued to “receive complaints as well as claims. With regard to the motor financing committees.”
The company paid cost discounts, including by entering the participation of the branches of three of its commercial signs: Scotland, Halifax and Lids. She also mentioned that she would close two cables, in Liverpool and Dunfermline, and hundreds of jobs decreased.
Nun said on Thursday that Lloyds is unlikely to perform “basic and transformational” acquisitions in the next two years and was focusing on organic growth instead.
Lloyd’s interest margin – the difference between the interest they charge on the loans and the rate that drives it on customer deposits – has increased to 2.97 percent in the fourth quarter, an increase of 2.95 percent in the previous quarter.
The group said that it remained “very committed to shareholders’ distributions” despite the provision of car financing, as it announced plans to obtain 2.11 People for the final share and the re -purchase of up to 1.7 billion pounds.