Lloyds Banking FY Profit Climbs

(RTTNews) - Lloyds Banking Group (LLOY.L, LYG) reported that its profit attributable to ordinary shareholders for fiscal year 2021 climbed to 5.36 billion pounds or 7.5 pence per share from 865 million pounds or 1.2 pence per share in the prior year.

The latest year results benefitted from higher income and the net underlying impairment credit of 1.2 billion pounds in 2021, driven by improvements to the macroeconomic outlook for the UK, combined with robust observed credit performance. The prior year result included underlying impairment charge of 4.2 billion pounds.

Profit before tax was 6.90 billion pounds up from 1.23 billion pounds last year.

Underlying profit before impairment of 6.8 billion pounds was up 6 per cent on 2020, with increased average interest-earning assets, a strengthened banking net interest margin and early signs of recovery in other income, alongside a reduction in operating lease depreciation.

Total statutory income, net of insurance claims, for the year was 16.32 billion pounds, an increase of 8 per cent on 2020, reflecting strong growth within the open mortgage book, positive insurance assumption and methodology changes and strong returns in the Group's equity investments businesses.

The company said its board has recommended a final ordinary dividend of 1.33 pence per share, resulting in a total ordinary dividend for 2021 of 2.00 pence per share.

The Board has also announced its intention to implement an ordinary share buyback program of up to 2.0 billion pounds, given the strong capital position of the Group.

For 2022, the Group now expects banking net interest margin above 260 basis points.