Lloyds Scraps Staff Bonuses as Covid-19 Hits Profits -- Financial News
December 18 2020 - 10:24AM
Dow Jones News
By David Ricketts
Of Financial News
Lloyds Banking Group PLC won't pay bonuses to any staff this
year after the onset of the Covid-19 pandemic dealt a severe blow
to its profits.
The U.K. lender, which in November announced Charlie Nunn as its
next chief executive, has told employees that it is unable to meet
the minimum profit level needed to pay out bonus payments to
workers in 2020.
The decision, which was first reported by the Financial Times,
comes despite Lloyds posting a pretax profit of 1 billion pound
($1.36 billion) during the third quarter--comfortably beating
analyst expectations. The profit was a turnaround from the more
than GBP670 million loss Lloyds Banking Group reported during the
previous three month period.
A spokesperson for Lloyds Banking Group said: "Given our
expected levels of profitability for 2020, we are unable to pay
group performance share awards to our people for this year."
"This decision on bonuses in no way reflects the hard work and
commitment our people have made throughout this extraordinary year
to keep our businesses operating strongly and to provide support
and help to our consumer and business customers."
Lower profit levels at Lloyds Banking Group comes after a recent
report by McKinsey, the consultancy, warned the banking sector
could lose as much as $3.7 trillion in revenues over the next three
years as a result of the pandemic.
The Lloyds Banking Group spokesperson added that the bank would
be making "above inflation pay increases" for most of its staff in
2021, which will be targeted toward those on lower pay.
The bank published its first ethnicity pay gap report on Dec. 11
where it revealed that its black employees are paid 20% less than
their colleagues.
Overall, using the median figure, BAME employees at the bank are
paid 15% less than their colleagues. However, the bank said that on
an average basis, BAME colleagues aren't paid less than their white
colleagues at any individual grade within the group.
Website: www.fnlondon.com
(END) Dow Jones Newswires
December 18, 2020 10:09 ET (15:09 GMT)
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