(Reuters) - Lloyds Banking Group (LLOY.L) Chief Executive Antonio Horta-Osorio told potential investors that he expects to see up to 70 percent of the bank’s earnings returned to shareholders by 2015, the Financial Times reported, citing sources.
The dividend target was revealed during recent shareholder roadshows aimed at attracting investment before the British government sells its 39 percent stake in Lloyds, the FT said on its website. (link.reuters.com/hym22v)
The government could sell a tranche of about 5 billion pounds ($7.64 billion)- or a quarter of its stake - to institutional investors, such as pension and hedge funds, this week, sources told Reuters on August 1.
Shareholders have not received a dividend from Lloyds since its ill-fated rescue of rival HBOS in 2008, when it was bailed out by Britain and ordered to halt payouts.
Lloyds declined to comment on the matter.
Lloyds, the country’s largest retail bank, last week flagged a return to payouts for investors, with Horta-Osorio saying he expects Lloyds to be “a high dividend paying stock” in the future. Shares jumped over 8 percent on the news.
($1 = 0.6548 British pounds)
Reporting by Richa Naidu in Bangalore; Editing by Leslie Gevirtz