Lloyds Launches GBP1 Billion Share Buyback; 2017 Profit Rises

By Adam Clark

Lloyds Banking Group PLC (LLOY.LN) said on Wednesday that it is launching a share buyback of up to 1 billion pounds ($1.40 billion) in the bank's first full-year results since returning to full private ownership.

The U.K.-focused bank reported a pretax profit of GBP5.28 billion for 2017, compared with GBP4.32 billion in 2016. Total income rose to GBP18.53 billion, from GBP17.50 billion.

Analysts had predicted pretax profit of GBP5.89 billion according to a FactSet consensus of nine estimates. Analysts projected a total income of GBP18.50 billion, according to a FactSet consensus of 15 estimates.

Net profit rose to GBP3.46 billion from GBP2.41 billion.

Lloyds' results included a total GBP1.65 billion in provisions over claims for historic mis-selling of payment protection insurance. Lloyds also took a further GBP865 million in other conduct provisions.

In addition to the share buyback, Lloyds said it raised its total dividend for 2017 to 3.05 pence a share from 2.55 pence in 2016.

Chief Executive Antonio Horta Osorio also unveiled Lloyds' strategic plan for 2018-20, which includes investing more than GBP3 billion in strategic initiatives, including further digitization. The bank also said it is targeting operating costs of less than GBP8 billion in 2020.

The U.K. government sold the last of its shareholding in Lloyds in May 2017, having taken a 43% stake in the bank in a GBP20.30 billion bail-out in 2008.

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

February 21, 2018 02:45 ET (07:45 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.