Lloyds Banking Group is not going to pay bonuses to any employees this 12 months after the onset of the Covid pandemic dealt a extreme blow to its earnings.
The UK lender, which in November introduced Charlie Nunn as its subsequent chief government, has advised workers that it’s unable to fulfill the minimal revenue degree wanted to pay out bonus funds to employees in 2020.
The choice, which was first reported by the Monetary Occasions, comes regardless of Lloyds posting a pre-tax revenue of £1bn through the third quarter — comfortably beating analyst expectations. The revenue was a turnaround from the greater than £670m loss Lloyds Banking Group reported through the earlier three month interval.
A spokesperson for Lloyds Banking Group mentioned: “Given our anticipated ranges of profitability for 2020, we are unable to pay group efficiency share awards to our folks for this 12 months.
“This resolution on bonuses under no circumstances displays the arduous work and dedication our folks have made all through this extraordinary 12 months to maintain our companies working strongly and to offer help and assist to our shopper and enterprise prospects.”
Decrease revenue ranges at Lloyds Banking Group comes after a latest report by McKinsey, the consultancy, warned the banking sector might lose as a lot as $3.7tn in revenues over the subsequent three years because of the pandemic.
The Lloyds Banking Group spokesperson added that the financial institution can be making “above inflation pay will increase” for many of its employees in 2021, which might be focused in direction of these on decrease pay.
The financial institution printed its first ethnicity pay hole report on 11 December the place it revealed that its Black workers are paid 19.7% lower than their colleagues.
General, utilizing the median determine, BAME workers on the financial institution are paid 14.8% lower than their colleagues. Nonetheless, the financial institution mentioned that on a mean foundation, BAME colleagues will not be paid lower than their white colleagues at any particular person grade throughout the group.
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