Lloyds Banking Group has reported an underlying profit of £8.11bn for the year 2015, a rise of 5% from £7.75bn a year ago.

Statutory profit before tax stood at £1.64bn, down 7% compared to £1.76bn in the prior year.

Net interest income increased 5% to £11.48bn in 2015 from £10.97bn in 2014.

The bank’s retail banking unit posted an underlying profit of £3.51bn in 2015, up 9% compared to £3.23bn a year earlier.

The British lender further said in its earnings statement that it increased provisions for payment protection insurance (PPI) compensation to £4bn in 2015.

Lloyds Banking Group CEO António Horta-Osório said: "We made a strong start in 2015 to the next phase of our strategy and have delivered a robust financial performance, enabling increased dividend payments.

"Our differentiated, UK focused, retail and commercial business model continues to deliver, with our financial strength, cost leadership and lower risk focus positioning us well in the face of current market uncertainty. We remain confident in our ability to become the best bank for customers and shareholders, while continuing to support the economy and helping Britain prosper."