- High-street bank Lloyds reported a fall in annual profit as lower rates weighed on income and more money was set aside to cover bad debts amid a pandemic-led deterioration in the economic outlook.

For the year ended 31 December, pre-tax profit slumped to £1.23 billion from £4.39 billion year-on-year as income fell 16% to £14.4 billion, paced by a 13% decline in net interest income to £10.8 billion.

Lower profits were significantly due to the impairment charge of £4.2 billion in 2020, up from £1.3 billion, primarily reflecting the deterioration in the economic outlook, the company said.

The CET1 ratio rose 242 basis points to 16.2%.

The company resumed its dividend, proposing a final ordinary dividend of 0.57 pence per share, down from 1.12 pence per share.

Looking to 2021, the company forecast net interest margin to be in excess of 240 basis points, and said risk-weighted assets to be broadly stable relative to 2020.

The company also confirmed that, subject to regulatory approval, Charlie Nunn's appointment as chief executive would start on 16 August 2021.

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