Thousands of Lloyds Bank shareholders will keep their fingers crossed for payment announcement as lender releases half-year results
Thousands of Lloyds Bank shareholders will be crossing their fingers to receive the announcement of a payment as the lender releases its half-year results next week.
Investors were deprived of dividends last year, after the Bank of England banned lenders from funneling cash as it urged them to hold onto money to deal with the pandemic.
But those restrictions were fully relaxed this month – just in time for the big UK banks to publish their semi-annual reports.
Lloyds, Barclays and Natwest results will take center stage, coming just after the central bank’s decision to drop remaining “safeguards” on payments to shareholders.
While it is uncertain whether there will be a quick return to big dividends from UK players, their US counterparts have recently distributed large returns to shareholders, which has raised hope among investors.
And Lloyds raked in windfall profits in the first quarter of this year as he was able to unlock £ 323million of the money he set aside last year to cover potential losses from the pandemic. .
But Danni Hewson, financial analyst at AJ Bell, said banks could be cautious by following Wall Street’s lead with “oversized” returns.
She said: “Some protections are maintained to ensure that banks always have additional capital available just in case and, in order not to make regulators nervous, the industry may be reluctant to go too far, too fast on returns on capital. ”
Virgin Money is the first to hit the shelves next week, followed by half-yearly figures from Barclays, Santander and Metro Bank, then Lloyds Banking Group and Natwest Group.