Lloyds post loss of £570m

Lloyds Banking Group, which is 40% owned by the taxpayer, has recorded losses of £570 million last year. It has set aside £1.5bn for compensation for the PPI scandal.

Lloyds narrows losses through cost-cutting

Lloyds said losses narrowed significantly from £3.5 billion a year earlier thanks to improvements in its core business.

But much of this was down to cost-cutting, as income fell 13% amid historic low interest rates.

Lloyds said it was very close to its original target to bring costs down to around £10 billion and was now hoping to cut costs even further, to £9.8 billion, in 2013.

The group added that it boosted lending to small business by 4% on a net basis and helped 55,000 customers buy their first home.

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Lloyds boss to receive £1.5m bonus

Lloyds Banking Group boss Antonio Horta-Osorio. Credit: PA

Lloyds chief executive Antonio Horta-Osorio will be paid a deferred shares bonus of £1.5 million for 2012, while staff will share a total pot of £365 million.

Mr Horta-Osorio confirmed that he requested for his bonus to be linked to Lloyds shares and the price paid by the Government.

His award will pay out if the Government sells at least a third of its stake at 61p - the average price at which the stake was bought during the bank's bailout at the height of the banking crisis - within five years.

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