Lloyds Banking Group saw profits tumble by 72% in 2020, as it battled with the economic fallout of the coronavirus pandemic.
The bank revealed the extent of the financial devastation caused by Covid-19, as statutory pre-tax profit fell to £1.2 billion, from £4.4 billion the previous year.
It is better than the £905 million analysts had expected, according to a company-compiled consensus.
It came as the bank booked impairment charges – money it sets aside for loans that could sour – of £4.2 billion, compared with £1.3 a year earlier.
It was lower than the £4.7 billion that analysts were expecting, after the bank notched up impairments of just £128 million in the fourth quarter, compared with the £586 million that had been expected.
Net income dropped 16% to £14.4 billion across the financial year.
Chief executive Antonio Horta-Osorio said: “Looking forward, significant uncertainties remain, specifically relating to the coronavirus pandemic and the speed and efficacy of the vaccination programme in the UK and around the world.”