Lloyds Bank disappoints on dividend after mis-selling charge

Lloyds Banking Group dashed investors’ hopes of receiving a dividend for 2013 after it took a further £1.8 billion ($3 billion) mis-selling charge that will blunt its ability to make shareholder payouts until next year.

The British bank, which last paid a dividend in 2008 before it was rescued by taxpayers during the financial crisis, said yesterday day it expected to apply to the regulator in the second half of the year to restart dividend payments.

Most analysts and investors had expected the bank to announce a small dividend for 2013 alongside its full-year results later this month.

A resumption of dividend payments would make the bank’s shares more attractive to investors and help to smooth government efforts to sell its remaining 33 per cent stake. – (Reuters)