Lloyds Banking Group has said it expects the UK to dip into a mild recession this year, as it braces for a fall in house prices and as mortgage lending continues to recover following September’s mini-budget.
The UK’s largest lender flagged an uncertain economic outlook and stressed it was focused on supporting its customers who will be “struggling to make ends meet”. It comes as the bank increased its bonus pot for bankers to £446 million last year, the highest amount dished out since 2018.
Charlie Nunn, the group chief executive of Lloyds, said: “We are predicting what we call a mild recession – nothing like the financial crisis, more like some of the earlier recessions we had in the early parts of the century. For our customers, especially those at the lower income bracket in the UK who we know will struggle to make ends meet, we are focused on supporting them.”
