Lloyds Banking Group cancels bonuses after profit drop

Staff at Lloyds Bank won't be receiving bonuses for this year after the pandemic hit profits at the lender.

It said the decision was not a reflection of the work its employees had done this year and that lower-paid staff will get pay rises above inflation.

Bankers were told in a memo on Thursday first reported by the Financial Times.

The bank will not meet the minimum threshold of profit for 2020 to make the payouts.

The bank has said before that if profit for 2020 was more than 20% below its target bonuses would be cancelled.

The lender will announce 2020's earnings on 24 February.

"In 2021 we're making above-inflation pay increases for most of our people and these will be geared toward those colleagues on lower pay," the bank said in a statement.

"Given our expected levels of profitability for 2020, we are unable to pay group performance share (or bonus) awards to our people for this year.

"This decision on bonuses in no way reflects the hard work and commitment our people have made throughout this extraordinary year to keep our businesses operating strongly and to provide support and help to our consumer and business customers."