Lloyds has allocated £1.2 billion to address possible compensation expenses related to motor finance commission arrangements. This decision follows a court ruling deeming these commissions illegal without customer consent.
In its annual report, Lloyds disclosed a pre-tax profit of £6 billion, representing a 20% decrease from the prior year's £7.5 billion.
CEO of Lloyds, Charlie Nunn, highlighted the lingering uncertainty concerning the ultimate financial repercussions and expressed anticipation for an upcoming Supreme Court session in April.
Stephen Braviner Roman, the general counsel of the Financial Conduct Authority, suggested that the car finance commission scandal has the potential to be as significant as the Payment Protection Insurance problem.