Lloyds Banking Group to Return Surplus Via Dividend, Share Buyback

By Matteo Castia

Lloyds Banking Group PLC said Thursday that it will return surplus capital to shareholders by way of dividends and a potential share buyback program.

The bank said it has approved loans for more than 1.10 billion pounds ($1.35 billion) under the Coronavirus Business Interruption Scheme and more than GBP3.60 billion under the Bounce Back Loan scheme. Both form part of the U.K. government's response to the crisis.

The company said it is offering fee-free overdrafts of up to GBP500.

In order to help the bank preserve liquidity, the executive committee agreed not to receive an annual bonus under the group's performance share award this year. Similarly, the chief executive and the chief operating officer have waived their performance share award for 2019.

Lloyds Banking said it is introducing a new long-term variable reward called Long Term Share Plan to replace the current Group Ownership Scheme. As a result of all these measures, the chief executive's maximum total compensation will reduce by 30%.

Shares at 1300 GMT were down 1.26 pence, or 4.2%, at 28.61 pence.

Write to Matteo Castia at [e-mail]

(END) Dow Jones Newswires

May 21, 2020 09:19 ET (13:19 GMT)

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