Lloyds Banking FY16 Profit Soars, Lifts Dividend; Sees Higher Margin In FY17

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) reported Wednesday that its fiscal 2016 profit before tax more than doubled to 4.24 billion pounds from last year's 1.64 billion pounds.

Earnings per share climbed 263 percent to 2.9 pence from 0.8 pence last year.

Underlying profit dropped 3 percent to 7.87 billion pounds from 8.11 billion pounds a year ago.

Total income was 17.50 billion pounds, down 1 percent from 17.64 billion pounds in the prior year. Net interest income was 11.435 billion pounds, slightly lower than 11.482 billion pounds a year ago. Margin improved to 2.71 percent.

Further, the company said its Board has recommended a final ordinary dividend of 1.7 pence per share, making a total ordinary dividend of 2.55 pence per share, an increase of 13 per cent on 2015 and in line with our progressive and sustainable ordinary dividend policy.

In addition, the Board has recommended a special dividend of 0.5 pence per share.

Looking ahead, for fiscal 2017, the company expects net interest margin to be greater than 2.70 percent, before impact of MBNA.

Separately, the company announced that Anthony Watson, Senior Independent Director, will retire from the Board at the 2017 Annual General Meeting on May 11. In addition Nick Luff, an independent Non-Executive Director and Chairman of the Audit Committee, has notified the Board that due to other commitments he does not feel able to seek re-election at the 2017 AGM.