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Lloyds Banking vows to make up missed dividends to shareholders

The bank also admitted its mistakes over the HBOS Reading branch fraud

Lloyds Banking Group - Lloyds Banking vows to repay missed dividends as it saves money amid crisis

 

Lloyds Banking Group PLC (LON:LLOY) has vowed to make up the dividends missed by shareholders after it cancelled the final payment for 2019.

The bank, along with its rivals, committed not to declare dividends or carry out share buybacks for the rest of 2020 after pressure from the Bank of England at the height of the coronavirus crisis.

At its annual general meeting today, chairman Lord Blackwell, however, reminded shareholders that any surplus capital in the business “still belongs to you”.

In his statement, Blackwell added: “I would like to reassure shareholders that the Board remains committed to returning surplus capital to shareholders in due course both through future dividends and potential share buybacks as appropriate.”

 

CEO to oversee HBOS Reading branch fraud commitments

Chief executive, Antonio Horsa-Osorio also said in his statement that he was now taking personal charge of compensation settlements for the HBOS Reading branch fraud scandal.

An independent review by Sir Ross Cranston last year concluded that all customers did not receive “the confidence that they had received fair and reasonable outcomes in respect of the assessment of direct and consequential losses”.

The FTSE 100-listed firm said it has now accepted these recommendations and it is “committed to implementing them in full in order to put this right for customers”.

Horta-Osório said he is personally overseeing the matter.

The fraud, which occurred between 2002 and 2007, hurt hundreds of struggling small businesses, pushing many into bankruptcy.

The businesses were referred to turnaround consultancy, Quayside Corporate Services, and then loaded with unmanageable amounts of debt before being taken over and asset-stripped.

Six people were jailed in 2017 over the scandal.

Shares in Lloyds fell 4% to 28.7p on Thursday afternoon.

Quick facts: Lloyds Banking Group

Price: 30.075 GBX

LSE:LLOY
Market: LSE
Market Cap: £21.19 billion
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