Lloyds Banking Group has cheered a strong performance in 2016 as it revealed annual profits more than doubled to £4.24 billion.
The taxpayer-backed lender said bottom line profits surged last year from the £1.64 billion reported in 2015 as it saw lower costs of compensation for the payment protection insurance (PPI) scandal.
Lloyds – in which the Government has less than 5% after selling down its stake – said its performance was “inextricably linked to the health of the UK economy, which has been more resilient than the market expected post (Brexit) referendum”.
A remuneration report released by Lloyds also shows that chief executive Antonio Horta-Osorio’s total pay package was cut from £8.7 million in 2015 to £5.5 million last year.
The reduction is due to a cut in his long-term shares award following the Brexit vote, which hit the company’s stock. The incentive payout fell from £5.18 million in 2015 to £1.58 million last year.
But the Portuguese saw his short-term bonus rise from £850,000 to £1.2 million.
His base salary will increase by 8% in 2017 to £1.2 million, the first raise since he joined in 2011.
The group increased its total bonus pool to £392.9 million from £353.7 million.
Chairman Lord Blackwell said: “Our approach to reward aims to provide a clear link between remuneration and delivery of the group’s key strategic objectives, namely, becoming the best bank for customers whilst delivering long-term, superior and sustainable returns to shareholders.
“The awards announced today recognise our further progress against our strategic objectives. The progressive return of the group to private ownership, the resumption of dividends since 2014 and our strong capital and balance sheet position are testament to the hard work of all colleagues to transform and simplify our business.”