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.
