Updated: Sun, 03 Mar 2013 06:49:10 GMT | By pa.press.net

Lloyds shares sale moving closer

The sale of taxpayer-owned shares in Lloyds Banking Group looked to be a step closer despite the lender's £6.8 billion PPI mis-selling scandal sending it to another big loss.


Lloyds Banking Group recorded pre-tax losses of 570 million pounds in 2012

Lloyds Banking Group recorded pre-tax losses of 570 million pounds in 2012

The sale of taxpayer-owned shares in Lloyds Banking Group looked to be a step closer despite the lender's £6.8 billion PPI mis-selling scandal sending it to another big loss.

Lloyds said it remained in the red with £570 million of losses in 2012 after taking more mammoth mis-selling provisions.

In a move further fuelling anger over bank bonuses, the group revealed a £1.5 million shares award for boss Antonio Horta-Osorio and said staff will share out a £365 million total pot.

But one of the conditions for Mr Horta-Osorio's payout is that the Government must have sold at least a third of its stake above 61p - the average price at which shares were bought during the bank's bailout in 2008. The target price is far lower than previously thought and raises the prospect of an imminent return to the private sector, with shares currently above 50p despite a 6% fall.

Fellow state-backed player Royal Bank of Scotland on Thursday also fuelled taxpayer hopes as it claimed the group would be fit for the Treasury to start selling down its 81% holding by the end of 2014, although the Government stressed it had no timetable for a stake sale.

A Treasury spokesman said: "The Government's strategy remains to see Lloyds continue the progress it has made in reforming itself into a strong and sustainable bank that supports the British economy, which in time can be returned to full private ownership.

"Today's results show that it is making strong progress in improving its core underlying performance and strengthening its balance sheet, but that there is still work to be done as it continues to deal with the legacy of the past."

Lloyds was the top-performing FTSE 100 stock last year after shares surged 80% in 2012 and Mr Horta-Osorio said he was "very confident" taxpayers will recoup their cash.

On an underlying basis, the results showed group profits surging from £638 million to £2.6 billion in 2012, but bottom-line losses came as it set aside another £1.5 billion for compensation relating to payment protection insurance (PPI) and another £310 million for interest rate swap mis-selling claims in the fourth quarter alone.

Total mis-selling provisions have now reached £6.8 billion for PPI after Lloyds put by £3.6 billion in 2012, with £400 million overall for the swaps scandal.

76Comments
01/03/2013 10:28
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PLEASE PLEASE PLEASE can someone explain to me how Lloyds can justify paying a total of £1.5 billion in bonuses after making a LOSS of £570 million its UNBELIEVABLE. The people running these Banks are definately taking the P1SS out of all of US.
01/03/2013 11:34
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I am self employed and if I make a loss, which is not too far away, my business will have to close!

Never mind paying staff bonuses.

Same old same old, WE pay the bonuses as tax payers and unfortunately that will never change.

Same as the utility companies and oil companies keep puting prices up. Nothing will change!

WHY. because most of the politicians have got Shares in these conpanies and are getting a nice dividend.

Me. I will battle on regardless just like MILLIONS like me in this ****house of a country. 

01/03/2013 11:52
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It is a national disgrace - the bankers are continuing to do exactly what they wish - everyone else has to make do with a pay freeze or a 2% pay increase - but these people talk in millions in their staff bonuses. I think I made the wrong career decision somewhere. Working for a bank is definitely for me when I come back in the next life. Cheap rate mortgages, bonuses, and no Government intervention. But of course we know why don't we ?? Tory rich boys again - all their pals work in top jobs in the banking industry.  
01/03/2013 11:52
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The thieving bastards have cut the net interest on my deposit account to a pathetic 1.2%.  I shall be closing my account and moving the money today.
01/03/2013 11:57
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can someone please tell me how do we stop this gravy train all the talking and writing and posting e mails does no good these people are laughing at us it is time to do something NOW
01/03/2013 13:14
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Defies belief... why can't we just hang these bankers to the nearest trees, they are parasites.
01/03/2013 12:34
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my morgage is up after 19 years endowment,short fall and no bonus for me,i have to find the moneynow to pay the short fall these bastards get a bonus.they are lucky to have there over payed jobs,**** the lot of them.
01/03/2013 12:54
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Somebody please tell me what is going on?

Big losses = big bonus???? Big losses should = the sack

However, banking is the pet love of all of the tories and so nobody should be surprised.

The bank will get its money back - it will simply make a couple of hundred people redundant

God help us!!!!!

01/03/2013 12:53
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Once again the bad managers and bosses are being rewarded for their incompetance at the tax payers expense, well done you spineless tory rich boys.
01/03/2013 12:38
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  Can these persons who receive the bonuses of any kind explain how can you pay money you have'nt got , surely if there is a loss of this magnitude there cannot be any money in the bank ( sorry about the use of the word bank ) perhaps they have an Aladdins lamp !  and the GENIE pops out to grant them their wishes which would benifit  everyone if they made a wish for the banks to make a profit instead of looking after number one . I was always told you only receive a bonus if you succeed and the failure lay with the leader who normally got shown the exit .

I'm afraid while there is this culture of sheer greed nothing will change .

01/03/2013 14:07
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REPLY TO, Someone (slim tim)

 

THE EXPLANATION IS SIMPLE, THEY ARE   'ALL IN IT TOGETHER'   WHILST WE ARE ON THE OUTSIDE LOOKING IN.     WHO ARE THEY?

 

MP's, OF ALL PARTIES, WHO ARE IN THE POCKETS OF BIG BUSINESS & ARE COMPLETELY SPINELESS, GUTLESS & WITHOUT MORALS. THEY WILL DO PRECIOUS LITTLE ABOUT THE BANKS AS THEY WON'T 'ROCK THE BOAT' FOR FEAR OF UPSETTING BIG BUSINESS & NOT BEING ABLE TO WALK INTO 'SOFT' DIRECTORSHIPS WHEN THEY HAVE FINISHED 'MILKING' THE PARLIAMENTARY SYSTEM.

 

LLOYDS HAVE SH IT ON THEIR INVESTORS & NOT PAID ANY DIVIDEND FOR YEARS, SUPPOSEDLY DUE TO LACK OF FUNDS, BUT THEY HAVE THE MONEY FOR MULTI MILLION POUND BONUSES.

 

ROLL ON THE REVOLUTION

01/03/2013 12:33
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Do you really think that the Banks are making a real loss. These losses are only due to increased provisions for write offfs, bad debts and mis-selling. it is creative accountancy. Most of the areas in the bank are in profit. Also do you really think that the wee person on the front line gets a massive bonus anyway?

Average bank staff are mostly on  just a liitle above minimum wage. These reports are just to cause a stir as usual!!

01/03/2013 14:16
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disgusting giving bonus's when the bank has done so badly, a bonus is something given for good work not bad,  i have shares in Lloyds, i wanted to sell in 1999 but didn't know how back then, i would have got around £12 each then,  i thought oh well at least it will be a nice thing to be able to sell when i reach retirement, what a joke!!!   oh how i regret not selling when they were worth something....., these shares are practically worhtless now, and worth a lot less than i initailly paid, so while i and many others have lost all our money the fat cats at the bank are still lining their pockets,  how is that right,  scrap all the bonus's i say. 
01/03/2013 14:15
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Bankers are in a no lose situation.
01/03/2013 13:24
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Sack the lot, break up the banks and lets get bank of Dave
01/03/2013 12:50
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paying off debts &fines so they can sell bank to friends relations
01/03/2013 14:05
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Nice to see the bankers continuing to reward themselves handsomely for their blatant frauds and theft of public money. When will we have a government tough enough to put a few of these loathsome individuals behind bars where they belong and not allow them to continue to raise two fingers at everyone else from their luxury life styles that cost the rest of us dear?
01/03/2013 13:42
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what every body should do is withdraw all your money keep it indoors if you get paid monthly withdraw the day after go and buy a base ball bat or gun to stop the burglars then these kunts cant get paid these out of order bonuses.
01/03/2013 12:43
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Old Gat & others. Point of information. Lloyds shareholders currently do not get dividends at all, and this has been the case for a few years now. The figures are better because of sell-offs and mass redundancies, mostly, so I'm not sure these bonuses are well-deserved.

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