In as much as Lloyds had lost so much profits in the last few years due to payment protection insurance and other financial scandals, it remains a contender in profitability. Lloyds owes more than £12 billion for mis sold PPI and about £1 billion for fines and other fiscal troubles.
However, it increased its profits and raised the sale of its government shares back to the private sector by £12.5 billion. Lloyds said on Thursday its taxpayer-stake had been reduced by 15.9% from 15.9 % as it launches itself back to full privatisation.
Morgan Stanley, which is selling the banks’shares, confirms that the governments holding on Lloyds had been reduced by 9 per cent.
However, critics said it shows how the government is supporting and is lenient against banks. A consumer body has asked whether FCA fines were effective in reforming banks or changing bank behaviour.