23rd Jan 2025 12:16
(Alliance News) - The chief executive officer of Lloyds Banking Group PLC has said he sees an opportunity for the UK to "stand out" on a global stage following the new Trump presidency in the US.
CEO Charlie Nunn also said he welcomes the government's intervention in the motor finance case, which has seen the bank set aside hundreds of millions of pounds for potential compensation.
Speaking to Bloomberg Television at the World Economic Forum in Davos, Nunn said there was "excitement" in parts of the world following the political changes in America.
"Obviously it's early days in the Trump presidency, but our colleagues in North America are really excited about what's going on," he said, adding that this sentiment had spread to other countries including Saudi Arabia and India.
Meanwhile, there is a "real concern about growth in Europe", he said, while it was a slightly more mixed picture for the UK which has experienced some uncertainty in recent months.
He added that, if tariffs hit the rest of the world under the Trump presidency, growth could accelerate in the US but slow for other global economies.
"But the structure of the UK economy – more services-based, very international, no supply chains heavily into the US – there's an opportunity for the UK to really stand out", he said.
Meanwhile, Nunn raised concerns about the future of the UK's car finance sector.
The Supreme Court will hear a case in April where it will decide whether to uphold a landmark ruling over the mis-selling of car loans, which could leave UK lenders footing a huge compensation bill.
As one of Britain's biggest lenders, Lloyds has set aside some GBP450 million to cover costs relating to the issue.
But it was revealed this week that Chancellor Rachel Reeves had submitted an application to the Supreme Court asking to give evidence in the upcoming case, arguing that it could damage the industry and make it more difficult and expensive to take out loans.
Nunn said Lloyds had concerns over whether the motor finance "can continue to support customers well", and also that the UK can "remain an investable location" for international investors.
"So, actually, we welcome the government getting involved in the Supreme Court hearing," he said.
Lloyds shares were 0.2% lower at 61.56 pence each on Thursday afternoon in London.
By Anna Wise, PA Business Reporter
Press Association: Finance
source: PA
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