Lloyds' Profit Slides in Turbulent Times for UK Banks

Nearly £2.5 billion in PPI payouts has dented Lloyds profits in an eventful reporting period for UK banks 

James Gard 20 February, 2020 | 11:31AM

Lloyds

Lloyds has raised its dividend in its latest annual results but it’s been a turbulent reporting season for the UK banks, with significant job losses announced at HSBC (HSBA) and a change of identity for Royal Bank of Scotland (RBS).

Pre-tax profits at Lloyds Banking Group (LLOY) were down 26% as the group took a £2.4 billion hit from payment protection insurance (PPI) payouts. But the full-year dividend of 3.37p is 5% higher than the previous financial year with the yield on the bank's shares now approaching 6%. The firm has now increased dividend payouts every year since reinstating income payments in 2014, having taken a long hiatus after the financial crisis.

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James Gard  is content editor for Morningstar.co.uk

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