Lloyds Banking Group Plc reported earnings that missed expectations in the fourth quarter as the lender set aside an additional £700 million for possible costs it will face for a regulatory probe into its motor finance business.

Lloyds Banking Group reported full-year profit below expectations on Thursday, weighed down by money it set aside for potential consumer redress in relation to a motor finance probe.

The FTSE 100 lender's pre-tax profit was down 20 per cent at £6bn, compared to £7.5bn in 2023, but shares jumped following market open

Lloyds Banking Group has reported a 20.4% drop in annual profit, missing forecasts due to motor finance provisions and falling lending margins.

Lloyds Banking Group reported a 20.4% drop in annual profit on Thursday, missing market expectations, as interest rate cuts hit lending margins and Britain's sluggish economic recovery hurt the bank's income.