Lloyds Banking begins GBP2 billion share buyback programme with UBS

(Alliance News) - Lloyds Banking Group PLC on Thursday launched the GBP2.0 billion share buyback ...

Alliance News 23 February, 2023 | 10:39AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Lloyds Banking Group PLC on Thursday launched the GBP2.0 billion share buyback it had announced alongside its annual earnings on Wednesday.

The share buyback programme begins on Thursday and will end no later than December 29.

On Thursday, the Edinburgh-based bank told investors it had entered an agreement with UBS AG to conduct the GBP2 billion share buyback on its behalf.

It said the sole purpose of the programme was to reduce the ordinary share capital of the company, and that it intends to cancel the shares purchased through the programme.

The buyback announcement had accompanied a cautious outlook for the year ahead on Wednesday, as Lloyds said it expects the benefits of rising interest rates on its net interest margin to begin fading.

Lloyds reported pretax profit of GBP6.93 billion for 2022, compared to GBP6.90 billion the previous year. Net interest income was GBP13.96 billion, up from GBP9.37 billion, while net income was GBP18.05 billion, up 14% from GBP15.76 billion. The bank's net interest margin rose to 294 basis points from 254 points, in line with its previous guidance.

For 2023 and 2024, it predicted capital generation of around 175 basis points, compared to 245 basis points on a pro forma basis in 2022.

Company shares were trading 1.2% higher at 51.88 pence each in London on Thursday morning.

By Holly Beveridge; Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Lloyds Banking Group PLC 53.94 GBX 0.00
UBS Group AG 26.33 CHF -1.72

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures