Friday preview: Lloyds hopes to recommence dividend as it reports full-year results

Lloyds Banking Group is expected on Friday to announce its first dividend payment since its near-collapse in 2008 in its full-year results statement.

The bank is waiting for the Prudential Regulation Authority to approve the resumption of a dividend. Analysts forecast a 1p per share dividend increasing to 3p in 2015.

Lloyds stopped paying dividends amid a government bailout and a number of scandals including PPI mis-selling and forex and Libor rigging.

“Over the last seven years Lloyds Banking Group has had a tortuous time since swallowing up the poison pill that turned out to be HBOS, and having to endure the indignity of a government bailout,” Michael Hewson, analyst at CMC Markets, said.

“It is hoped that this week’s full year results will mark a significant milestone in the banks recovery story with the hope that the Prudential Regulation Authority will allow the resumption of a dividend, with subsequent dividends thereafter.”

He noted that the UK government had already pared down its stake further in the bailed out lender this week from 25% to 24%, and said markets are also likely to be looking for further signs that Lloyds will continue to write down its holding in the recently spun off TSB.

The market predicts the lender will report a pre-tax profit of about £7.5bn, up from £6.2bn in the prior year.

Chief executive Antonio Horta-Osorio is expected to receive a long-term bonus award worth about £7m after hitting targets in the past three years.

Numis said that the focus will be on net interest margins, company guidance, operating expenses, capital position, PPI, and dividend.

Friday 27 February

INTERIMS
Bluefield Solar Income Fund Limited, Mysale Group, Ricardo, River and Mercantile Group , Waterman Group

INTERIM DIVIDEND PAYMENT DATE
Conviviality Retail , IG Group Holdings, NB Private Equity Partners Ltd., NCC Group

QUARTERLY PAYMENT DATE
City of London Inv Trust, Picton Property Income Ltd

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (GER) (07:00)
Chicago PMI (US) (14:45)
GDP (Preliminary) (US) (13:30)
Pending Homes Sales (US) (15:00)
U. of Michigan Confidence (Final) (US) (14:55)

FINALS
Berendsen, IMI, International Consolidated Airlines Group SA (CDI), Intu Properties, Lloyds Banking Group, Old Mutual, Pearson, Rentokil Initial, Restaurant Group, Rightmove, Spectris, UBM, William Hill

SPECIAL DIVIDEND PAYMENT DATE
Ryanair Holdings

EGMS
Target Healthcare Reit Ltd

AGMS
Formation Group, Intelligent Energy Holdings, Shoe Zone

UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:05)

FINAL DIVIDEND PAYMENT DATE
RWS Holdings, Terra Capital