Lloyds Banking FY17 Profit Up, Sees Margin Growth; Announces Strategic Update

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) reported Wednesday that its fiscal 2017 profit before tax climbed 24 percent to 5.28 billion pounds from last year's 4.24 billion pounds.

Earnings per share climbed 51 percent to 4.4 pence.

Underlying profit was 8.49 billion pounds, 8 percent higher than 7.87 billion pounds last year.

Net interest income grew 8 percent to 12.32 billion pounds from 11.44 billion pounds a year ago. Net interest margin increased to 2.86 percent.

Further, the company announced total ordinary dividend of 3.05 pence per share, up 20 percent on 2016, and a share buyback of up to 1 billion pounds representing an increase in total capital returns of up to 46 percent.

Looking ahead, the company expects net interest margin expected to be around 290 basis points.

Separately, the company announced the next phase of its strategy. The company will be invest over 3 billion pounds in four strategic priorities, further enhance leading customer experience, further digitise the Group, maximise the Group's capabilities, and transform ways of working. These will drive the company's transformation into a digitised, simple, low risk, customer focused UK financial services provider and deliver.