Lloyds's 4Q Pretax Profit Nearly Halved; Dividend Resumed
February 24 2021 - 2:50AM
Dow Jones News
By Sabela Ojea
Lloyds Banking Group PLC reported Wednesday a nearly halved
pretax profit for the fourth quarter of 2020 and resumed paying
dividends by declaring the maximum allowed under the Prudential
Regulation Authority's temporary framework on 2020
distributions.
The FTSE-100 listed lender posted a pretax profit of 792 million
pounds ($1.12 billion) compared with GBP1.45 billion for the same
period a year earlier. It was expected to post a pretax profit of
GBP471 million, taken from a compilation of 23 analyst models.
Pretax profit was hit by lower income and an increased impairment
charge.
The U.K. bank's net income fell to GBP3.59 billion from GBP4.13
billion for the year-earlier period. Net income was anticipated to
reach GBP3.43 billion, according to analyst models.
The bank booked impairments of GBP128 million for the period,
when it was anticipated to book impairment charges of GBP586
million. This compares with an impairment charge of GBP341 million
for the fourth quarter of 2019.
The board has declared a dividend of 0.57 pence a share, down
from 3.37 pence a share for 2019. The board was expected to declare
a dividend of 0.53 pence a share.
Lloyds' common equity Tier 1 capital ratio--a measure of a
bank's financial strength--stood at 16.2% from 13.8% at Dec. 31,
2019. The bank was expected to reach a ratio of 15.4%, according to
a compilation of 23 analyst models.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
February 24, 2021 02:35 ET (07:35 GMT)
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