Lloyds scraps dividends in Covid-19 measure

(Sharecast News) - Lloyds Banking Group has scrapped its final 2019 dividend and agreed not to make shareholder payouts or buy back shares in 2020 at the request of the Bank of England to preserve capital in the Covid-19 crisis.
The FTSE 100 bank said the resolution proposing the final dividend would be withdrawn from its annual general meeting due on 21 May. The board will decide on its dividend policy and amounts that might be paid at the end of 2020.

The Bank of England's Prudential Regulatory Authority has made it clear to Britain's banks that it wants them to conserve capital during the Covid-19 crisis. Lloyds' decision will be unpopular with its 2m small shareholders who rely on the dividend for income. Lloyds is believed to have the biggest group of small investors in the UK.

Lloyds said: "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 PRA 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."