Lloyds Banking Group increases its 2017 interim dividend by 18%

DividendMax Ltd.

Lloyds Banking Group increases its 2017 interim dividend by 18%

Strong financial performance with improvements in underlying and statutory profit

Underlying profit of £4.5 billion, up 8 per cent; underlying return on tangible equity of 16.6 per cent

Total income 4 per cent higher at £9.3 billion

- Net interest income of £5.9 billion, up 2 per cent with improved margin of 2.82 per cent

- Other income 8 per cent higher at £3.3 billion

Operating costs 1 per cent lower at £4.0 billion. Market-leading cost:income ratio improved to 45.8 per cent

Asset quality remains strong with impairment charge of £268 million, asset quality ratio stable at 12 basis points

Loans and advances increased to £453 billion, including the benefit of the acquisition of MBNA

Statutory profit before tax 4 per cent higher at £2.5 billion, despite an additional £1 billion of conduct charges in the second quarter, primarily in respect of PPI

Strong capital generation of c.100 basis points reflecting strong underlying performance with common equity tier 1 (CET1) ratio of 14.0 per cent (13.5 per cent post dividend); leverage ratio of 4.9 per cent

Tangible net assets per share of 52.4 pence (31 Dec 2016: 54.8 pence) after payment of 2016 final dividend of 2.2 pence per share and a 1.4 pence per share reduction from the acquisition of MBNA

2017 guidance for NIM and AQR updated, with all other guidance reaffirmed

Net interest margin for the full year now expected to be close to 2.85 per cent, including MBNA

Asset quality ratio for the full year now expected to be less than 20 basis points, including MBNA

Continue to expect 2017 capital generation at the top end of the 170-200 basis points ongoing guidance range

All other longer term guidance remains unchanged

Increased interim dividend

Interim ordinary dividend of 1.0 pence per share, up 18 per cent, in line with our progressive and sustainable approach to ordinary dividends

Companies mentioned