• Text size      
  • Send this article to a friend
  • Print this article

Pressure on Lloyds after fines

Lloyds Banking Group releases its annual report on Thursday amid pressure on the group to claw back handouts following fines and more mis-selling charges.

The taxpayer-backed lender returned to a bottom-line profit for the first time in three years with statutory profits of £415 million in 2013 and said it was ready to be returned to the private sector.

But the group came under fire after chief executive Antonio Horta-Osorio refused to forgo a potential £1.7m shares bonus and handed out £395m to staff despite revealing another £1.8 billion in payment protection insurance provisions and receiving a record £28m fine for paying staff "champagne bonuses" that drove mis-selling.

With shares holding above 73.6p - the average price paid by the Government when the bank was rescued - the Treasury is understood to be considering selling shares worth another £3bn or more to institutional investors imminently.

Outsourcing giant Serco will reveal the full effects of last year's scandal over the criminal tagging contract when it reports annual results on Tuesday.

The group has been rocked by the affair after it erupted last July alleging that Serco and rival G4S overcharged for tagging offenders, some of whom were found to be dead, back in prison or overseas. Last month, Serco agreed to repay the Government £68.5m for overcharging on criminal tagging contracts, as well as repay £2 million of past profits from a prisoner-escorting contract.

Insurance giants Aviva and Legal & General will reveal the financial cost of the storms and flood damage that have wrought havoc across much of southern England when they post full-year figures.

The extreme weather may have cost insurers as much as £1 billion, according to estimates by Deloitte.

More Than parent RSA Insurance and Direct Line Group have already revealed hefty expected bills following the bad weather.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

216583