Dividends

Date this page was last updated: 13 May 2020

In order to help us to serve the needs of businesses and households through the extraordinary challenges presented by COVID-19, the board has decided that until the end of 2020 we will undertake no quarterly or interim dividend payments, accrual of dividends, or share buybacks on ordinary shares.

In addition, in response to a request from the Prudential Regulation Authority and to preserve additional capital for use in serving our clients, the board has agreed to cancel payment of the final 2019 dividend in relation to ordinary shares. Accordingly, resolution 17 in relation to the declaration of that dividend will be withdrawn from the Annual General Meeting, scheduled to take place on 21 May 2020. 

Our Board will decide on any dividend policy and amounts at year-end 2020.

While the Board understand the cancellation of this dividend will be disappointing to shareholders, we believe it was appropriate to agree to this in the current exceptional circumstances. While we expect that the months ahead will be exceptionally challenging for businesses and households across the UK, we remain focused on our purpose of Helping Britain Prosper. We are supporting our customers with a raft of measures to help minimise the financial impact of the global pandemic on households, businesses and communities. You can read more about these measures here. 

The Group has published a letter to shareholders and this is available here:

Important Update to Chairman's Letter: Dividend Withdrawal and AGM Arrangements

Thank you for your understanding as we work together to keep our loved ones safe and continue to support our customers, colleagues and shareholders during this difficult time.

Why have you cancelled both your 2019 final dividend and interim 2020 dividends?

In order to help us serve the needs of businesses and households through the extraordinary challenges presented by the COVID-19 pandemic, the Board decided that, until the end of 2020, the Group will undertake no quarterly or interim dividend payments, accrual of dividends, or share buybacks on ordinary shares.

In addition, in response to a request from our regulator, the Prudential Regulation Authority, and to preserve additional capital for use in serving our customers, the Board agreed to cancel payment of the final 2019 dividend in relation to ordinary shares.

Where can I find a copy of the Prudential Regulation Authority’s request to Lloyds Banking Group? 

A copy of the letter from Sam Woods, Deputy Governor and CEO of the Prudential Regulation Authority, to Antonio Horta-Osorio, Group Chief Executive of Lloyds Banking Group, is available on the Prudential Regulation Authority’s website here.

 
When will you resume paying dividends?

The Board will decide on any dividend policy and amounts at year-end 2020.

Does the cancellation of dividends apply to preference shares?

Preference shares are not impacted by the dividend suspension. The coupons on preference shares are discretionary, but ceasing payments on ordinary dividends does not impact the Group’s ability to pay coupons.

Please see the information relating to our announcement on 31 March 2020

Note

Interim 2009, Final 2009, Interim 2010, Final 2010, Interim 2011 - The Group was prevented from paying dividends on its ordinary shares as a result of the European Commission state aid review.

Final 2008 - The Group was prevented from paying dividends on its ordinary shares whilst the HM Treasury preference shares issued as part of the HM Treasury recapitalisation scheme were in existence.

Please see the information relating to our announcement on 31 March 2020

Note

Interim 2009, Final 2009, Interim 2010, Final 2010, Interim 2011 - The Group was prevented from paying dividends on its ordinary shares as a result of the European Commission state aid review.

Final 2008 - The Group was prevented from paying dividends on its ordinary shares whilst the HM Treasury preference shares issued as part of the HM Treasury recapitalisation scheme were in existence.