Strong financial performance with improved profit and returns on both a statutory and underlying basis
· Statutory profit before tax at £5.3 billion, 24 per cent higher, with a return on tangible equity of 8.9 per cent
· Underlying profit of £8.5 billion, 8 per cent higher, with an underlying return on tangible equity of 15.6 per cent
· Net income at £17.5 billion, 5 per cent higher with improved net interest income and other income; net interest margin increased to 2.86 per cent
· Positive operating jaws; market leading cost:income ratio improved to 46.8 per cent
· Asset quality remains strong with asset quality ratio of 18 basis points
· Continued lending growth in targeted segments including SME and the open mortgage book
· Strong capital generation of 245 basis points with a CET1 ratio of 15.5 per cent, pre dividend and share buyback
· CET1 capital requirement of c.13 per cent plus a management buffer of around 1 per cent
· Total ordinary dividend of 3.05 pence per share, up 20 per cent on 2016, and a share buyback of up to £1 billion representing an increase in total capital returns of up to 46 per cent. Total capital return of up to £3.2 billion.
And later;
Dividend
The Board has recommended a final ordinary dividend of 2.05 pence per share. This is in addition to the interim ordinary dividend of 1.0 pence per share that was announced at the 2017 half year results. The total ordinary dividend per share for 2017 of 3.05 pence per share has increased by 20 per cent from 2.55 pence per share in 2016.
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