Lloyds announces £1bn share buyback after 2017 results

  • Lloyds announces £1bn share buyback after 2017 results

Lloyds announces £1bn share buyback after 2017 results

Antonio Horta-Osorio, chief executive (left), said: "2017 has been a landmark year in which the Group has made significant strategic progress and returned to full private ownership".

Profit was less than expected mainly because of higher charges for payment protection insurance (PPI) after the Financial Conduct Authority's TV advertising campaign featuring Arnold Shwarzenegger attracted more complaints.

The announcement was accompanied by full year results for the bank which showed statutory profit before tax of £5.3 billion, up 24% year-on-year.

Lloyds Banking Group has posted its largest annual pre-tax profit in over a decade, but narrowly failed to meet analyst expectations.

Mr Horta-Osorio unveiled a new three-year strategic plan which will see it invest more than £3bn, focusing on boosting its digital capabilities.

It said: 'The strategy outlined today will enable the group to deliver strong statutory profit growth supported by targeted asset growth in key segments, a resilient net interest margin, lower operating costs, strong asset quality and lower remediation costs, whilst delivering strong capital generation and sustainable and superior shareholder returns'. JPMorgan Chase & Co. set a GBX 85 ($1.17) price objective on shares of Lloyds Banking Group and gave the company a "buy" rating in a report on Thursday, February 15th.

It has reported a total ordinary dividend of 3.05 pence per share, up 20% on 2016, and a share buyback of up to £1 billion representing an increase in total capital returns of up to 46%.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "There's a lot to like in Lloyds' numbers, with profits rising, costs under control, and prodigious amounts of cash being thrown off to shareholders".

Market watchers have speculated that the turnaround specialist could seek a more challenging role in a bank with a more worldwide presence and bigger commercial ambition, now that UK-focused Lloyds has been rebuilt and returned to private ownership.

Lloyds Banking Group wants to increase its financial planning and retirement open book of assets by more than £50bn by 2020 and add an additional one million new pension customers. We now have the largest and top rated digital bank in the United Kingdom alongside the largest branch network. "We are therefore well prepared to succeed in a digital world". The Bank of England increased the bank rate for the first time in more than 10 years and the government triggered Article 50 and launched European Union exit negotiations.