25th Feb 2016 07:22
LONDON (Alliance News) - Lloyds Banking Group PLC on Thursday lifted its payout to shareholders and declared a special dividend in a return of capital, even as the bank's 2015 profit took a dent from a new GBP2.1 billion charge for the payment protection insurance scandal.
The bank lifted its dividend for the year to 2.25 pence per share from 0.75p in 2014, and declared a special payment of 0.5p in addition.
Pretax profit fell to GBP1.64 billion in 2015 from GBP1.76 billion in 2014. Underlying profit, which excludes asset sales and the cost of PPI provisions, rose to GBP8.11 billion from GBP7.76 billion. The total PPI provision for the year was GBP4.0 billion, up from GBP2.2 billion in 2014, including a fourth-quarter charge of GBP2.1 billion.
Still state-backed after its GBP20.5 billion rescue in the 2008-09 financial crisis, Lloyds is awaiting the sale of the the UK government's remaining 9.2% stake. Weak sentiment towards financial stocks since the start of 2016 has delayed UK Chancellor George Osborne's plan to sell the last of the taxpayer's shares.
Investor concerns about slowing economic growth and bank profitability in a lower-for-longer interest rate environment have seen shares in Lloyds fall below the 73.6p level at which the government breaks even.
The stock closed down 1.2% at 62.20 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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