PROFITS fell at Lloyds’ private bank last year, its accounts showed yesterday, as the unit reshuffled its business structure.
Pre-tax profits came in at £46.1m, down 8.6 per cent on the 2013 level.
Income fell 21.3 per cent in 2014, compared with growth of 3.7 per cent in 2013.
The private bank, which services rich clients, has moved some of its advisers over to the main Lloyds Bank, meaning the unit misses out on some fee income. It paired up with Aberdeen Asset Management to offer other services, again hitting its fee income.
The annual report warned that short-term growth may be weak, but that it hopes to improve in three to five years’ time.
“The environment within which the company operates remains competitive, and near-term growth will likely be impacted by the revised front office incentive scheme,” the report said.