2023 pretax profit 7.5 bln pounds, meeting expectations
Bank takes 450 mln pounds charge against motor finance probe
Lender writes back 700 mln pounds on old Telegraph debt CEO

LONDON, Feb 22 Reuters Lloyds Banking Group reported a 57 jump in annual profit on Thursday, despite Britain39;s faltering economy and a 450 million pound 571 million charge for potential costs from a regulatory review into motor finance.

Shares in the lender were down 1.4 at 0920 GMT as analysts questioned whether the cash set aside for potential compensation for customers claiming they were overcharged on car loans would be enough.

In a messy set of earnings for 2023, the bank39;s profit was boosted by an unexpectedly light charge for bad loans despite Britain entering a recession in the second half of 2023 of 308 million pounds, well down on the prior year.

CEO Charlie Nunn confirmed on a call with reporters that this was partly down to a 700 million pound writeback on historic loans made against Britain39;s Telegraph newspaper, after they were repaid by the Barclay family in December.

As Britain39;s biggest mortgage lender, Lloyds39; fortunes are closely linked with those of the struggling wider economy.

But like its rivals, Lloyds has enjoyed a huge boost to lending revenue from higher Bank of England interest rates which underpin borrowing costs while containing losses from potential unpaid loans.

Lloyds said it adopted more positive economic forecasts for 2024 that helped keep…