Black Horse back in the Black

Lloyd's Banking group announced significantly improved results this morning with underlying profit doubling to £6.2bn. This almost certainly paves the way for dividend restoration in the second half of 2014 and a further offer of shares which will reduce the 33% government stake significantly in the run in to the 2015 election, as previously predicted in this blog.

Extract from results highlights:

  • Invested in our products and services for our customers, while further reducing costs and improving efficiency through our Simplification programme
  • Significantly improved our financial performance, with Group underlying profit more than doubled to £6.2 billion, and a statutory profit before tax of £415 million
  • Substantially strengthened our balance sheet, despite a charge for legacy business provisions totalling £3.5 billion, primarily relating to legacy Payment Protection Insurance business
  • Lowered risk by reducing non-core assets and our international presence, and by growing our customer deposits and reducing our reliance on funding from the wholesale markets
  • As a result, the UK Government began reducing its stake in the Group in September

 

lloyds banking group announcement

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