Lloyds Launches GBP1 Billion Share Buyback; 2017 Profit Rises
February 21 2018 - 3:00AM
Dow Jones News
By Adam Clark
Lloyds Banking Group PLC (LLOY.LN) said on Wednesday that it is
launching a share buyback of up to 1 billion pounds ($1.40 billion)
in the bank's first full-year results since returning to full
private ownership.
The U.K.-focused bank reported a pretax profit of GBP5.28
billion for 2017, compared with GBP4.32 billion in 2016. Total
income rose to GBP18.53 billion, from GBP17.50 billion.
Analysts had predicted pretax profit of GBP5.89 billion
according to a FactSet consensus of nine estimates. Analysts
projected a total income of GBP18.50 billion, according to a
FactSet consensus of 15 estimates.
Net profit rose to GBP3.46 billion from GBP2.41 billion.
Lloyds' results included a total GBP1.65 billion in provisions
over claims for historic mis-selling of payment protection
insurance. Lloyds also took a further GBP865 million in other
conduct provisions.
In addition to the share buyback, Lloyds said it raised its
total dividend for 2017 to 3.05 pence a share from 2.55 pence in
2016.
Chief Executive Antonio Horta Osorio also unveiled Lloyds'
strategic plan for 2018-20, which includes investing more than GBP3
billion in strategic initiatives, including further digitization.
The bank also said it is targeting operating costs of less than
GBP8 billion in 2020.
The U.K. government sold the last of its shareholding in Lloyds
in May 2017, having taken a 43% stake in the bank in a GBP20.30
billion bail-out in 2008.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
February 21, 2018 02:45 ET (07:45 GMT)
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