Lloyds chiefs hit with record £117m fine

Lloyds Banking Group chief executive Antonio Horta-Osorio has lost out on £350,000 worth of bonuses after it was hit with a record £117 million fine by the City regulator over the way it handled mis-selling complaints.

The UK’s financial conduct authority found the state-backed group had wrongly denied compensation to customers over payment protection insurance – the wider scandal that has already cost Lloyds £12 billion.

Mr Horta-Osorio will miss out on deferred bonuses as a result of the failings which happened on his watch in the period between March 2012 and May 2013.

He is among a number of top executives to be docked payouts totalling £2.65 million for the period.

They are likely to include Alison Brittain, who is departing as head of Lloyds's retail division to become boss of Premier Inn and Costa coffee owner Whitbread.

The fine will also see the bonus pool for state-backed Lloyds, to be announced next spring, being reduced by £30 million. For 2014 the total was £360 million.

– (PA)