![\"Charlie](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2020\/11\/Charlie-Nunn.png\")
Lloyds Banking Group, parent of Bank of Scotland, has posted a 12% increase in statutory pre-tax profits to \u00a36.6 billion for 2025 to \u00a36.7bn despite a rise in compensation for motor finance sales.<\/p>\n
Chief executive Charlie Nunn said: \u201cLooking ahead to 2026 and the culmination of the five year strategy we set out in 2022, our continued business momentum and strategic delivery enable us to upgrade guidance.<\/p>\n
\u201cThe sustained strength in performance means we are well positioned for 2026 and beyond.<\/p>\n
\u201cGiven our continued strategic execution and sustained strength in financial performance, we remain confident in meeting our 2026 commitments (including our upgraded target for return on tangible equity) and the Group\u2019s outlook beyond 2026. <\/p>\n
\u201cWe look forward to setting out the next phase of the Group\u2019s strategy, beyond the current plan, in July.\u201d<\/p>\n
Mr Nunn said afterwards that he was expecting two interest rate cuts this year.<\/p>\n
Today\u2019s results showed remediation costs of \u00a3968 million, including \u00a3800m related to the potential impact of motor finance commission arrangements.<\/p>\n
The underlying impairment charge rose from \u00a3433m to \u00a3795m, which Lloyds said was a strong and stable credit performance. The figure was broadly flat at \u00a3177 million in the fourth quarter.<\/p>\n
It is recommending a final dividend of 2.43p a share, which increases the total for the year by 15% to 3.65p.<\/p>\n
For 2026 the Group expects:<\/p>\n
\u2022\u00a0 Underlying net interest income of c.\u00a314.9 billion<\/p>\n
\u2022\u00a0 Cost:income ratio of less than 50% (including operating costs of less than \u00a39.9\u00a0billion)<\/p>\n
\u2022\u00a0 Asset quality ratio of c.25 basis points<\/p>\n
\u2022\u00a0 Return on tangible equity now of greater than 16%<\/p>\n
\u2022\u00a0 Capital generation of greater than 200 basis points<\/p>\n
\u2022\u00a0 To pay down to a CET1 ratio of c.13.0%<\/p>\n
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Santander branch closures<\/strong><\/p>\n Santander UK is closing 44 bank branches, including those in Kirkintilloch and Stranraer, placing almost 300 jobs across the UK at risk.<\/p>\n The lender said its move was a continuing response to the changing needs of its customers as more people bank online.<\/p>\n The decision would leave it with just 244 full service branches.<\/p>\n Game \u2018in difficulty\u2019<\/strong><\/p>\n Retail company Game is said to have filed a notice of intention to appoint administrators through law firm RPC. <\/p>\n It would be the second time the chain has entered administration. In 2012 it resulted in the closure of 277 stores and over 2,000 job losses. <\/p>\n They were subsequently rescued by OpCapita.<\/p>\n In 2019 the company was acquired by Frasers Group which also owns Sports Direct and House Of Fraser. The majority of Game\u2019s 300 stores are now housed within other shops under the brand\u2019s umbrella.<\/p>\n In 2020, Frasers shut 40 stores, including Glasgow Fort.<\/p>\n EasyJet<\/strong><\/p>\n Budget airline EasyJet\u00a0has posted robust first-quarter sales and growing demand for summer holidays.<\/p>\n The headline loss widened to \u00a393m, from \u00a361m a year previously, due to investments in two Italian airports.<\/p>\n However, the airline said bookings were \u201cbuilding well\u201d for the summer season and left its full-year outlook unchanged.<\/p>\n Kenton Jarvis, chief executive, said: \u201cWe have seen continued demand for our flights and holidays over the last quarter. Our focus on, and investment in, customer experience and punctuality is driving strong results.<\/p>\n \u201cBookings are building well for the summer season, with our largest-ever January booking period.\u201d<\/p>\n \t <\/div>\n
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