Lloyds plans H2 dividend following return to profit

Lloyds Banking Group has said it expects to report a "small" pre-tax profit for 2013 and intends to restart dividend payments in the second half of this year.

In a pre-results statement, the bank said it will likely apply to the Prudential Regulatory Authority to restart dividend payments at a "modest level" this year. The state-owned bank then anticipates moving to a dividend payout ratio of at least 50% of sustainable earnings over the medium-term. That statement disappointed investors who had hoped for a dividend on 2013 earnings, and sent the bank's shares down 2.8% to 80.9p apiece. Lloyds also confirmed this morning that preparatory work for a possible future sale of shares to retail investors had also begun. The bank expects und...