Lloyds brings in record profits but puts aside £450 million for regulatory probe

Lloyds Bank reports strong £7.5 billion profit in 2023, attributing it to interest rate changes by the Bank of England to combat inflation.

CEO Charlie Nunn highlighted income growth and cost discipline as key to the bank's robust financial performance.

However, Lloyds has set aside £450 million for a potential settlement due to an FCA investigation into now-illegal car finance practices that allowed dealers to inflate loan interest rates for higher commissions. The final cost of the settlement may vary. This follows similar financial disclosures from Barclays and HSBC.