Dividends and share buybacks

Note:

Interim 2020 - In order to help the Group 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 we would undertake no quarterly or interim dividend payments, accrual of dividends, or share buybacks on ordinary shares.

Final 2019 - 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.

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.

Lloyds Banking Group plc (the ‘Company’) makes available a dividend reinvestment plan (‘DRIP’) to shareholders who wish to use their cash dividend to purchase shares in the Company.

What is the DRIP?

The DRIP is a low cost way to use your dividend payments to purchase additional shares in the Company, enabling you to increase your shareholding in a convenient and cost-effective manner.

The DRIP is operated by Equiniti Financial Services Limited (‘EFSL’). Rather than receiving a dividend cheque or having a bank account credited with a cash dividend payment, EFSL will use the dividends payable to DRIP participants to purchase shares on their behalf in the market, under a special low-cost dealing arrangement.

The fees and charges are located in the DRIP Terms & Conditions.

Joining the DRIP

Any shareholder wishing to join the DRIP should contact EFSL for an application form, using the contact details provided below.

Leaving the DRIP

Any shareholder who is a participant in the DRIP and who wishes to withdraw from the plan should contact EFSL for a revocation form, using the contact details provided below.

DRIP Terms & Conditions

DRIP Terms & Conditions can be accessed here. They are also available in hardcopy through EFSL using the contact details provided below.

Online: www.shareview.co.uk/info/drip

Tel: +44 871 384 2990

Textphone: +44 871 384 2255

Calls to 0871 numbers are charged at 8p per minute from a BT landline, calls from mobiles and other networks may vary.

Each of these documents should be considered by shareholders before making any decision regarding the DRIP. Participation in the DRIP is optional and these documents do not constitute advice to join, continue to participate in, or withdraw from the DRIP. If you have any doubt about the action you should take, it is recommended that you consult your stockbroker, solicitor, accountant or other independent professional adviser authorised under the Financial Services and Markets Act 2000.

How does your final ordinary dividend of 2.11 pence per share relate to your progressive dividend policy?

• With our full year 2024 results the Board announced a final ordinary dividend of 2.11 pence per share, resulting in a total ordinary dividend for 2024 of 3.17 pence per share, up 15% on prior year and in line with the Group's progressive and sustainable ordinary dividend policy.
• The Board will maintain its progressive and sustainable ordinary dividend policy going forward whilst retaining the flexibility to consider excess capital distributions.
   

When will your shares be quoted ex-dividend, and when will the final ordinary dividend be paid?

• Our UK shares will be quoted ex-dividend on 10 April 2025 and the final ordinary dividend paid on 20 May 2025.
• Important dates for our UK dividend can be found in our financial calendar.
   

Given your excess capital position, why a wasn’t a special dividend paid?

• Given the Group’s strong capital position, along with a final ordinary dividend of 2.11 pence per share, the Board also announced its intention to implement an ordinary share buyback programme of up to £1.7 billion.
• Given the total ordinary dividend of 3.17 pence per share and the intended ordinary share buyback, the total capital return in respect of 2024 was equivalent to £3.6 billion, c.9% of the Group’s market capitalisation value (as at 14 February 2025).
• The Board remains committed to future capital distributions and the Group paid down to its capital target of c.13.5% at the end of 2024, along with guidance of an ongoing target of c.13.0% by the end of 2026.
• As usual, the Board will continue to give due consideration at each year end to the return of any surplus capital.
   

Why are you buying back shares?

• Alongside the Group’s 2024 results, the Board announced an ordinary share buyback programme of up to £1.7 billion.
• In the course of our buyback programme, you would generally expect the Group’s share count to reduce. Share buybacks can be an effective use of excess capital. It is expected that shareholders who retain their shares in the company will benefit from the share buyback programme as they will own an increased proportion of the total shares in the company and should therefore see an increase in the dividend per share going forward given the reduced number of shares in issue.
   

*The Group issues daily stock exchange announcements confirming share buybacks undertaken, with year-to-date progress updated at the end of each month. See regulatory news.