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Lloyds to pay £365m in bonuses as losses slide to £570m
by Dylan Lobo on Mar 01, 2013 at 07:51
Lloyds Bank is to pay out £365 million in bonuses after losses at the lender fell sharply to £570 million in 2012.
The bonus pot is 3% lower than in 2011 and includes £1,485,000 million worth of deferred shares for chief executive António Horta-Osório (pictured). The deferral period for the award has been extended to five years.
‘We strive to ensure that we motivate, incentivise and retain our colleagues whilst continuing to be mindful both of the economic outlook and the views of our stakeholders,’ the bank told the stockmarket.
The news was revealed in the bank’s full year numbers, which showed a significant fall from the £3.5 billion loss registered in 2011.
Elsewhere, funds under management in its wealth business jumped from £182 million to £189.1 million largely driven by flows into its St James’s Place subsidiary.
Underlying profit in the wealth division increased by 25% to £358 million driven by increased income, reflecting strong deposit and margin growth and lower costs.
The bank said: ‘Wealth provides strong growth opportunities for the group. Its goal is to be recognised as the wealth advisor of choice to appropriate retail and commercial banking customers alongside targeted customer acquisition.'
Overall Horta-Osório was pleased with the numbers across the group: ‘The substantial progress we made in 2012 means we are now ahead of our plan to transform the group, and this was reflected in our stronger underlying financial performance in the year,’ he said.
‘Since setting out our strategy in June 2011, we have significantly strengthened the balance sheet, and substantially improved efficiency and focus, while continuing to work through legacy issues.’
Lloyds also revealed that once its shares hit 61p, they will be recorded in public finances, according to HM Treasury calculations.
The bank's shares were down in morning trade, however, and stood at 52.6p at 9.20am, representing a fall of 3.7%.
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