LLOYDS – DIVIDEND POSSIBILITY SOON ?

by Michael on May 3, 2012

I read with interest in the Internation Herald Tribune an article on LLOYDS BANKING GROUP of which I am a suffering (maybe not as bad as some) shareholder.

The article however was quite positive in a half glass full kind of way, and is summarised below:

  • disposals of non-core parts of the balance sheet have been accelerated
  • non-core shrinkage target will be met a year early
  • Deposits 6% higher than 1 yr earlier
  • Funding for 2012 already secured
  • provisions for bad loans and net interest better than expected.

And therefore IF the economy remains stable and there are no nasty surprises LLOYDS could have £1.8 billion  in net profit (reference given to Thomson Reuters estimates).

And IF there is no further requirement to use this money to increase capital requirements, then LLOYDS could possibly decide to restore a dividend.

This if it indeed happens would be greatly appreciated. It would help increase the share price and bring us closer to the possibility of reducing the government stake.

Maybe we have indeed turned the corner and we can see the green shoots of recovery of a former blue chip company.

Cheers (with my glass half full).

 

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