Lloyds Banking Group has realised its greatest annual profit in a decade.
Before tax, profits for 2016 were reported to be £4.24 billion, a leap of 158%.
The banking group is still paying out for its mis-selling of payment protection insurance (PPI), but the amount was reduced from £4bn to £1bn. Lloyds did, however, have to make a provision of a further £1.1bn for other "conduct" issues.
The result has brought the tax-payers’ stake in Lloyds to below 5%.
The UK government stumped up £20.3 billion to rescue the bank at the height of the financial crisis, thus acquiring 43% ownership. Since 2009, Lloyds has managed to return more than £18.5 billion.
The bank expects to return to full private ownership this year.
Its CEO, Antonio Horta-Osorio, credited the UK’s economy for boosting the bank’s recovery, but noted future uncertainties.
"Given our UK focus, our performance is inextricably linked to the health of the UK economy which has been more resilient than the market expected post referendum, with GDP growth of 2% in 2016," he said.
"The UK's decision to leave the European Union means the exact nature of our relationship with Europe going forward remains unclear and the economic outlook is uncertain.
"However, the recovery in recent years with low unemployment, reduced levels of household and corporate indebtedness and increased house prices means the UK is well positioned," he added.
Lloyds is the UK's biggest retail banking group. It also owns the Halifax and HBOS brands.
