LLoyds Banking Group increases its 2017 full year dividend by 20%

DividendMax Ltd.

LLoyds Banking Group increases its 2017 full year dividend by 20%

Lloyds Banking group 2017 final results

Strong financial performance with improved profit and returns on both a statutory and underlying basis


·     Statutory profit before tax at £5.3 billion, 24 per cent higher, with a return on tangible equity of 8.9 per cent


·     Underlying profit of £8.5 billion, 8 per cent higher, with an underlying return on tangible equity of 15.6 per cent


·     Net income at £17.5 billion, 5 per cent higher with improved net interest income and other income; net interest margin increased to 2.86 per cent


·     Positive operating jaws; market leading cost:income ratio improved to 46.8 per cent


·     Asset quality remains strong with asset quality ratio of 18 basis points


·     Continued lending growth in targeted segments including SME and the open mortgage book


·     Strong capital generation of 245 basis points with a CET1 ratio of 15.5 per cent, pre dividend and share buyback


·     CET1 capital requirement of c.13 per cent plus a management buffer of around 1 per cent


·     Total ordinary dividend of 3.05 pence per share, up 20 per cent on 2016, and a share buyback of up to £1 billion representing an increase in total capital returns of up to 46 per cent. Total capital return of up to £3.2 billion.

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