LLOYDS Banking Group has defended its branch closure programme and treatment of small businesses at a general meeting where the group’s board was lambasted by TV celebrity Noel Edmonds.

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Mr Edmonds asked repeated questions about directors’ handling of the scandal surrounding frauds committed by former Reading staff of HBOS, which Lloyds rescued at the height of the financial crisis.

“Your bank destroyed my business, Unique Group, over 100 people lost jobs, lives were destroyed,” Mr Edmonds alleged at the meeting in comments directed at Lloyds’ chairman Lord Blackwell.

He added: “Last year I listened to you and your CEO promising swift and fair compensation for all victims but that process has not materialised for the majority of people who have had their lives destroyed by a criminal banker.”

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The fraud that affected the firm ran by Mr Edmonds took place in an HBOS branch in Reading, where between 2003 and 2007 over 60 small business owners that had run into financial difficulty were referred to a consultancy firm before having their assets stripped.

Last year six people, including two former HBOS employees, were jailed for their role in the fraud.

Lloyds Banking Group appointed Professor Russel Griggs to review the cases of people affected.

Lord Blackwell defended the bank’s conduct in connection with the scandal.

Asked by Mr Edmonds if Lloyds had compensated any people for losses suffered as a consequence of the fraud, he said: “We have gone through a review with all of those customers looking at all the circumstances that they could. Professor Griggs has conducted a review of their claims and come up with compensation arrangements that are appropriate to deal with all the circumstances including the inconvenience and distress those customers have been put through.”

Lord Blackwell noted the group had helped Thames Valley Police in the investigations into the affair.

Following a lengthy exchange with Mr Edmonds he concluded: “You have set out one version of events and what you believe to have happened we have a different version of events and what we believe to have happened. We haven’t been able to agree a settlement and we’re not persuaded of the allegations you have made.”

Noting Mr Edmonds had stated that he wished to pursue the matter in court Lord Blackwell said he was happy to let a judge reach a decision based on the evidence presented.

Lloyds set aside £100m last year to compensate victims of the fraud.

Chief executive Antonio Horta-Osorio told the meeting 2017 was a landmark year for Lloyds.

The bank returned to full private ownership after the Government sold its remaining stake.

“The fact that we returned £900m more than the Government’s original investment was the culmination of hard work by colleagues across the group and the source of immense pride for us,” said Mr Horta-Osorio.

He said Lloyds had achieved good progress with a strategy it has developed with the avowed aim of helping Britain prosper.

Describing small and medium sized enterprises as the lifeblood of the economy, Mr Horta-Osorio told the meeting: “We remain focused on supporting this important sector.

“We have increased net lending to SMEs significantly, by over £8 billion since 2010 whilst the overall market has seen net lending decline by £22bn. We are targeting £6bn in additional net lending to start ups SME and mid-market businesses by 2020.”

Lloyds is adapting in response to technological developments, competition in the sector and regulatory changes. It aims to be the leading digital bank.

The group has announced plans to close around 100 branches in recent months, including 11 in Scotland.

But Mr Horta-Osorio said Lloyds understands the importance customers continue to attach to branches alongside other ways of accessing services. The group has the largest branch network in the UK.

When Lloyds closes a branch because of insufficient customer demand it will continue to act in accordance with access to banking standards to ensure it meets customers’ needs.

This includes a partnership with the Post Office allowing customers to conduct many of their routine banking needs.

“It also includes our expanding fleet of mobile bank branches which visit many relatively isolated communities in which our branch has closed,” said Mr Horta-Osorio. “We have 35 mobile branches serving in 180 locations.”

A shareholder from Sutherland complained about the quality of the mobile banking service the group has introduced in the area in place of branches.

Mr Horta-Osorio earned £6.4m last year.