Lloyds Banking Group has returned to a profit for the first time since it was rescued by taxpayers at the height of the financial crisis.
The state-backed bank reported a statutory pretax profit of £415 million for 2013, reversing a £606 million loss in 2012. Underlying profits more than doubled to £6.2 billion.
Chief executive Antonio Horta-Osorio is in line for a deferred shares bonus worth £1.7 million for 2013. The bank is set to pay out £395 million in bonuses for top staff, signalling an eight per cent increase from 365 million in 2012.
The figures were tempered by huge new mis-selling provisions, taking the total cost of the payment-protection insurance scandal for Lloyds to almost £10 billion after taking a further £1.8 billion charge in the fourth quarter.
Horta-Osorio said the bank "expects to apply to the regulator in the second half of the year to restart dividend payments at a modest level" next year. Lloyds has not paid a dividend to shareholders since 2008.
The government currently owns a 33 per cent stake in the bank after selling a 6 per cent stake at a price of 75p a share raising £3.2 billion in September last year.
A new sale is expected to take place later this year.Reuse content