Lloyds Banking Issues 2013 Update; Expects Underlying Profit Of GBP 6.2 Bln

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) announced the Group expects to report substantial progress on its strategic plan, a Group underlying profit of 6.2 billion pounds for 2013, ahead of analyst consensus expectations and more than double that in 2012, a Group 2013 full year net interest margin of 2.12 percent, and core loan growth of 3 percent. The Group also expects to report a small statutory profit before tax for the 2013 financial year, and an estimated pro-forma fully loaded common equity tier 1 ratio of 10.3 percent at 31 December 2013, in line with guidance.

The Group said, subject to a return to sustainable profitability and there being no major unexpected changes in its business outlook or regulatory requirements, the Board expects that it will apply to Prudential Regulatory Authority, or PRA, in the second half of 2014 to restart dividend payments, commencing at a modest level. The Board expects thereafter to have a progressive dividend policy with the aim of moving, over the medium term, to a dividend payout ratio of at least 50 percent of sustainable earnings.

The Board also noted that it will no longer issue new ordinary shares to fund discretionary payments on hybrid capital securities. The Group confirmed that, following the statements made by the Chancellor in his Mansion House speech and in the Autumn Statement, preparatory work including the preparation of certain documents required for a possible future sale of shares in Lloyds Banking Group to the public, has commenced.