Britain's state-rescued bank Lloyds says it cut net losses in 2013 and ramped up staff bonuses, but its performance was hit by a vast mis-selling compensation bill.
Losses after tax stood at STG838 million ($A1.55 billion) last year, compared with a net loss of STG1.471 billion in 2012, Lloyds Banking Group (LBG) said on Thursday in a results statement.
The lender took a vast provision of STG3.5 billion, primarily relating to compensation for customers who were mis-sold payment protection insurance.
Earlier this month, the bank warned that it would take an extra hit of almost STG2.0 billion to cover mis-selling claims.
Lloyds, which is 33-per cent owned by the taxpayer after a bailout at the height of the global financial crisis, added that revenues dipped slightly to STG18.5 billion in 2013.
Underlying profit more than doubled to about STG6.2 billion, in line with previous guidance, as it was boosted partly by asset sales as part of its ongoing restructuring.
Lloyds added that chief executive Antonio Horta-Osorio was in line for a deferred shares bonus of STG1.7 million for 2013.
The lender also lifted its staff bonus pool by eight per cent to STG395 million.
