By Jonathan Davies
Lloyds Banking Group has confirmed that it will pay its first shareholder dividend since the financial crisis in 2008.
The banking group made the announcement as it reported full-year profits of £1.8bn, compared with £415m in 2013.
Lloyds will pay a dividend of 0.75p per share, meaning £535m will be shared between its three million shareholders. £130m of that will go to the government, which as of earlier this week, holds a 23.9% stake in the bank.
When the government bailed out the bank in 2008, it took a 41% stake. But the £500m share sale earlier this week took its stake below a quarter.
The bank also said that it said aside a further £700m to cover claims against mis-sold Payment Protection Insurance (PPI). It takes the total for the year to £2.2bn and means that Lloyds has now set aside more than £12bn since the start of the scandal.
Lloyds Banking Group chief executive, Antonio Horta-Osorio, is set to take an £11m pay package. It consists of £1m basic pay, an £800,000 bonus and a three-year incentive plan including 535,083 shares.
John Cridland, director general of employers' organisation the CBI, said: "It is encouraging to hear some good news from the banking sector. All of our major banks are on difficult turnaround journeys and Lloyds have shown that progress is possible.
"It is right in these circumstances that the hard work of staff is recognised. The CBI has been clear that rewards for failure are unacceptable, but legitimate financial rewards for success should not be vilified."
