Lloyds Banking Group more than doubles pre-tax profits in 2016

Lloyds Banking Group more than doubled its pre-tax profits in 2016. Credit: Andrew Matthews / PA

Lloyds Banking Group has posted annual pre-tax profits of £4.24 billion, more than double the £1.64 billion reported for 2015.

The taxpayer-backed lender said bottom line profits surged last year as it saw lower costs of compensation for the payment protection insurance (PPI) scandal.

The performance of the bank, in which the government owns about 5.95% after selling most of its stake, is said to be a strong indicator for the entire UK economy.

Lloyds said its performance was "inextricably linked to the health of the UK economy, which has been more resilient than the market expected post (Brexit) referendum".

A remuneration report released by Lloyds also shows that chief executive Antonio Horta-Osorio's total pay package was cut from £8.7 million in 2015 to £5.5 million last year.

The reduction is due to a cut in his long-term shares award following the Brexit vote, which hit the company's stock.

But Horta-Osorio saw his short-term bonus rise from £850,000 to £1.2 million.

His base salary will increase by 8% in 2017 to £1.2 million, the first raise since he joined in 2011.