Lloyds Banking Group reported full-year profit below expectations on Thursday, weighed down by money it set aside for potential consumer redress in relation to a motor finance probe.

The lender took a further provision in the fourth quarter for a potential hit linked to its motor finance business, leading its pretax profit to miss expectations.

Lloyds Banking Group Plc reported earnings that missed expectations in the fourth quarter as the lender set aside an additional £700 million for possible costs it will face for a regulatory probe into its motor finance business.

Lloyds Banking Group (NYSE:LYG) shares climbed 5.6% in Thursday morning trading in the U.S. after announcing a £1.7B ($2.14B) share buyback program along with a 15% dividend hike. Still, Q4 2024 earnings came in worse than expected as more capital was set aside for potential costs it will incur for a motor finance investigation.