Lloyds results show how much banks have benefitted from taxpayer-funded pandemic job support

The furlough scheme has allowed workers who might otherwise have lost their jobs to keep up with debt repayments, writes James Moore

Prancing pony? Lloyds annual profits fell sharply but the final quarter showed things starting to look up (Getty)

A 72 per cent plunge in profits is never something to be welcomed but despite that unpleasant looking number Lloyds Banking Group had reasons to feel cheerful as it unveiled its annual results. 

The sharp decline in its earnings was driven by the need to set aside a huge chunk of money to cover bad loans, some £4.2bn for the year as a whole. 

Given the economic crisis wrought by Covid-19, that was inevitable. But while unemployment, at a five-year high of 5.1 per cent, is now rising sharply and is a long way from its expected peak, measures such as the Job Retention Scheme and other government interventions have limited the damage.