an escalation in pre-tax profits to £2 billion, in stark contrast to the £676m loss reported during the same period in 2020. Accordingly, the bank hopes to release £333 million out of the £2.4 billion set aside last year to cover possible bad debts incurred by businesses and households amid the fallout from COVID-19.
“The group has delivered a solid financial performance with continued business momentum, bolstered by an improved macroeconomic outlook for the UK,” Lloyds’ interim CEO William Chalmers said.
While cautioning that the pandemic continues to have a noteworthy impact on people, businesses and communities in the UK, however, Chalmers noted that the bank is set to reintroduce dividend payments worth 0.67p per share, following the Bank of England’s temporary ban on pay-outs last year. These restrictions imposed by the BoE were fully removed earlier this month, after being partially lifted in January.
Apart from the restart of dividend payments, the improved economic outlook has also enabled Lloyds to resume provision of staff bonuses, which were scrapped in 2020 on account of the global health crisis and the top British bank has set aside nearly £100m for this purpose.
