Lloyds bankers now only get a maximum of £4,600 in bonuses
And now they're punishing the bankers for it - Bonuses were reduced to £353.7 million, from £369.5 million in 2014.
In fact, Lloyds said average bonus awards across all workers at the bank are approximately £4,600.
And if bankers earned a cash bonus - they only get £2,000. The rest of the bonus is topped up with shares, which is also subject to deferral or being cut again on performance.
While that size of bonus may seem OK for the average worker, to put into perspective how small this is for the industry statistics from Emolument.com show that in 2016, the average associate, a fairly junior position in banking, received a £90,000 basic salary, topped up with a very healthy £50,000 bonus.
Lloyds said in a separate statement to its results that the bank implemented a "26% collective performance adjustment" to the group's bonus pool because of the amount of litigation and conduct issues that have hit the lender's profits and shareholder returns over the last year.
This mainly includes £30 million being "deducted to recognise the impact of failing to deliver the highest levels of customer service in payment protection insurance (PPI) complaint handling."
In 2015, Lloyds PPI provision stood at £4 billion of which an additional £2.1 billion was racked up in the fourth quarter.
- Statutory profit before tax of £1.6 billion (2014: £1.8 billion), with increased PPI charge.
- Underlying profit of £8.1 billion, up 5% (up 10% excluding TSB); underlying return on equity of 15.0% (2014: 13.6%).
- Total income up 1% to £17.6 billion.
- Net interest income of £11.5 billion, up 5%, driven by further margin improvement to 2.63%.
- Operating costs lower at £8.3 billion despite additional investment and Simplification costs; market-leading cost:income ratio further improved by 0.5 percentage points to 49.3%.
- Impairment charge down 48% to £568 million; asset quality ratio improved by 9 basis points to 0.14%.