Shares in the state-backed lender soared 9 per cent following the news on Thursday morning, to 68p.
Pre tax profits dropped to GBP1.6bn for 2015, from GBP1.8bn the preceding year, dragged down by the PPI supply in the fourth quarter.
The bank’s bonus pool was cut to GBP354m, down from GBP370m in 2014, to represent the additional PPI settlement that had “influenced on profitability and investor returns”.
The most recent statement for the PPI misselling scandal shoves on Lloyds’ overall damages pot to GBP16bn, accounting for nearly half the complete PPI supply of the sector.
Last July, Mr Horta Osorio said that paying a dividend could be “definitely more appealing” for retail investors. The government has sold its stake in the financial institution down to about 9 per cent.
Banks dollar decline that is divi
UK associations are providing some help in the payout gloom which has shaped this earnings season
But a number of weeks past, Chancellor George Osborne postponed a discounted deal of Lloyds shares to the typical people that was planned for the spring, attributing “disruptive markets”.
Stripping out PPI as well as other one off things, the bank delivered underlying gain of GBP8.1bn, upward from GBP7.8bn in 2014, but slightly below analyst expectations of GBP8.3bn.
Mr Horta Osorio stated the bank anticipated “normal dividends to grow within the medium-duration, using a payout ratio of at least 50 per cent of sustainable gains”.
Gary Greenwood, an analyst at Shore Capital, said after the results: “We consider Lloyds shares offer good value at present levels and anticipate them to react favourably to the nice news on dividends this morning.”
An income fund manager at Miton Group, Eric Moore, said earlier this week he was anticipating 3p a share for 2015. “Lloyds is in a position now to eventually turn into a dividend machine,” he said.