Profits remain broadly flat in 2022 for Lloyds

There was, however, a £26m increase seen in 2022, with this coming as a result of higher income and lower operating expenses – offset by the impact of an impairment charge, compared to an in credit scenario a year prior, in part reflecting the deterioration in the economic outlook. This impairment charge hit £1.5bn in 2022, compared to a net credit of £1.3bn in 2021. 

Its loans and advances, meanwhile, increased by one percent on what was seen at the end of 2021 at £454.9bn, including a growth of £6.3bn in its open mortgage book, alongside higher retail unsecured loan and credit card balances.  

Commenting on this, the group’s chief executive Charlie Nunn said: “While the operating environment has changed significantly over the last year, the group has delivered a robust financial performance with strong income growth, continued franchise strength and strong capital generation, enabling increased capital returns for shareholders. 

“A year ago we announced our ambitious new strategy with the aim of growing our business and deepening relationships with our customers, meeting more of their financial needs. We have made a good start to delivery and remain confident in our ability to deliver for all stakeholders. 

“We know that the current environment continues to be challenging for many people and have mobilised the organisation to further support our customers. Our purpose-driven strategy is more relevant now than ever before. We remain committed to Helping Britain Prosper and helping the country recover from the current economic uncertainties. 

“We continue to believe our strategy will create higher, more sustainable returns, as reflected in our enhanced guidance. We are excited about the opportunities ahead.”