The UK’s biggest mortgage lender Lloyds Banking Group reported an 20% increase in revenue to £4.7bn in the final three months of 2022 as it benefited from rising interest rates. Like its peers Lloyds has faced criticism for not increasing savings rates as much as borrowing rates. Despite the rise in revenue, profits remained flat as it set aside more funds to protect itself from a potential increase in loan defaults. The bank revealed that staff would share a £446m bonus pot – the highest since 2018 – and follows the government's decision to remove the cap on banker bonuses last year. The bank also forecast that the UK economy will shrink 1.2% this year before returning to growth in 2024 and that house prices will fall by about 7% in 2023.