Former Halifax Bank shareholders eye up £2bn dividend bonus

The HBOS Building in HalifaxThe HBOS Building in Halifax
The HBOS Building in Halifax
'‹Former Halifax shareholders could be in for a bumper dividend payment on Thursday when parent company Lloyds announces full year results.

Lloyds was in talks with the Bank of England over the weekend to win approval for a payout of more than £2bn to shareholders, according to The Sunday Times.

Lloyds declined to comment.

If Antonio Horta-Osorio, chief executive of the bailed-out lender, can convince the regulator that Lloyds has sufficient reserves to afford the payout, take another hit on mis-selling compensation and withstand a possible economic slowdown, a shareholder pay-out could be announced.

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It is understood ​Mr ​Horta-Osorio would like to pay about £1.5bn, or 2p a share, in an ordinary dividend and £500m or more in a one-off special dividend.

Lloyds is expected to reveal hefty mis-selling charges when it posts results on Thursday.

Analysts predict the bank will stomach a £2​bn charge for payment protection insurance (PPI) mis-selling in the fourth quarter, followed by a £1.1​bn hit for 2016/17.

​Pre-tax profits​ are expected to hit £1.24bn, according to analysts at Jefferies, with net interest income coming in at £11.5bn over the same period.

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Lloyds announced a fourfold rise in annual profits to £1.8​bn last year.

​On Friday RBS will post its eighth year of annual losses. The lender revealed last month that it would remain in the red after taking a £2.5​bn hit on charges for mis-selling scandals.