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Profitable Lloyds to pay first dividend since bailout

Lloyds Banking Group will pay its first dividend to shareholders in six years - since its 2008 bailout - after reporting annual profits of £1.8 billion.

Lloyds Banking Group is 24% owned by the taxpayer. Credit: Stefan Rousseau/PA Wire

The payments to the three million shareholders will total £535 million after the fourfold rise in annual profits.

£1.8bn
Lloyds Banking Group's annual profits.
£130m
The amount the Treasury will receive as part of the banking group's dividend payment.

Lloyds was rescued after an input of £20 billion taxpayer funds in 2008 at the height of the financial crisis.

The Government's 40% stake has since been reduced to 24%, meaning the Treasury will receive £130 million from the company's 0.75p a share dividend payment.

Report: Lloyds to cut 9,000 jobs over next three years

At least 9,000 jobs will be axed at Lloyds Banking Group over the next three years along with an unknown number of branch closures, Reuters has reported, citing sources.

The cuts would amount to 10 per cent of Lloyds' workforce and follow some 30,000 job axings by the company since the financial crisis of 2007 to 2009.

The Government still holds a 25 percent stake in Lloyds Banking Group after a £20.5 billion pound bailout in the wake of the financial crisis. Credit: Paul Faith/PA Archive

Reuters reported the job cuts will be announced by Chief Executive Antonio Horta-Osorio in a three-year strategy review next week.

The report said the increase of online transactions and automated bureaucracy will lead to the closure of some branches.

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Lloyds chairman: Conduct was 'truly shocking'

The chairman of Lloyds Banking Group has admitted the company's manipulation of key interest rates was "truly shocking".

The company has been slapped with a £218m fine from US and UK regulators for manipulating the LIBOR inter-bank rate and the Repo Rate.

The Repo Rate was the benchmark used by the Bank of England to calculate how much banks paid to take part in the Government's Special Liquidity Scheme (SLS) to support banks during the financial crisis.

Lloyds Banking Group's chairman admitted it had been guilty of 'shocking conduct'. Credit: Anthony Devlin/PA Wire/Press Association Images

Lloyds chairman Lord Blackwell has replied to a highly critical letterwritten to him by the Bank of England's governor, Mark Carney.

"I absolutely share your concern about the nature of the SLS conduct, and in particular its implication for reducing fees," Lord Blackwell wrote.

"This was truly shocking conduct, undertaken when the Bank was on a lifeline of public support."

He also agreed that Lloyds would pay nearly £8m back to the Bank of England for fees it should have paid for the SLS.

Mark Carney warns of 'further action' against Lloyds

The governor of the Bank of England has warned that Lloyds and its subsidiary Bank of Scotland could face "further action" over the manipulation of benchmark interest rates.

In a letter to Lloyds chairman Lord Blackwell, Mark Carney said the BoE's Prudential Regulatory Authority would now consider whether to take further steps.

"In view of the seriousness of this matter, the PRA will consider whether further action should be taken in relation to the Firms or individuals at the Firms."

The banks have been fined for manipulation of the LIBOR rate and Repo Rate.

Bank of Scotland was formerly part of HBOS, which was taken over by Lloyds in 2009.

Mark Carney: Lloyds actions 'clearly unlawful'

The governor of the Bank of England has strongly condemned Lloyds Banking Group for its attempts to manipulate two key interest rates.

Part of Lloyds' £218m fine from US and UK regulators relates to its attempts to reduce the fees it paid to the Bank of England for the Special Liquidity Scheme - a government programme to help struggling banks during the financial crisis.

Mark Carney was highly critical of Lloyds' conduct. Credit: Lefteris Pitarakis/PA Wire/Press Association Images

The Bank of England has now published a letter from governor Mark Carney to the chairman of Lloyds, Lord Blackwell.

"Such manipulation is highly reprehensible, clearly unlawful and may amount to criminal conduct on the part of the individuals involved," Mr Carney wrote.

Lloyds fined for fixing fees for taxpayer help

About £70 million of Lloyds' fine from financial regulators is for trying to manipulate the fees payable to the Bank of England for taking part in a government scheme to support British banks during the financial crisis.

The group is set to pay a total of £218 million to UK and US authorities after it became the latest lender to be punished over the rigging of interest rate benchmarks.

Lloyds has been hit by fines from both US and UK regulators. Credit: Sean Dempsey/PA Wire/Press Association Images

Lloyds said the manipulation took place between May 2006 and 2009, adding that those involved have either left the company, been suspended or are subject to disciplinary proceedings.

Barclays was the first to settle Libor rate-rigging claims, paying £290 million in penalties to US and UK regulators in June 2012, while state-backed Royal Bank of Scotland was hit with a £391 million settlement.

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Lloyds Bank to pay £218m fine for rate manipulation

Lloyds Banking Group has agreed to pay fines worth £218 million to UK and US regulators in relation to the manipulation of Libor.

Lloyds Banking Group has agreed to pay fines worth £218 million. Credit: Press Association

The US authorities have charged the bank with "manipulation, attempted manipulation and false reporting of Libor" between April 2008 and September 2009.

The firms manipulated the benchmark interest rate at which banks lend money to each other in order to reduce the amount it paid in fees to Bank of England.

Lloyds increases sale of TSB shares after strong demand

Lloyds Bank has increased the number of shares it is selling in TSB as a result of strong demand from investors.

The bank, a quarter of which is owned by the taxpayer, had initially decided to sell a 25% stake in TSB but has now upped the proportion to 35%.

TSB has been valued at £1.3bn. Credit: Nick Ansell/PA Wire/Press Association Images

The shares have been priced at 260p each, giving TSB a market value of £1.3bn.

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