Lloyds Banking Group is to pay a dividend to its three million shareholders for the first time since it was rescued by the British taxpayer in 2008.
The landmark in the lender’s recovery, resulting in payments totalling £535 million, came as it announced a fourfold rise in annual profits to £1.8 billion.
Lloyds was rescued after a £20 billion taxpayer injection in 2008 at the height of the financial crisis led to it being 40% owned by the British Government.
That stake has since been reduced to 24%, meaning the Treasury will pick up £130 million from the company’s 0.75p a share dividend payment.