Profits quadruple but payout disappoints market

Shareholders in Lloyds Banking Group will receive their first dividend in six years but the "token" pay-out disappointed the market. Lloyds shares eased as the bank said the dividend would start at 0.75p a share and would build "over the medium-term" though against a "strong background" of capital and margin rebuild. Chief executive Antonio Horta-Osorio was unveiling a fourfold rise in profits to £1..8bn and a capital ratio of 13per cent which he said was the highest among UK retail banks.He said that was the background to his £11m pay package. Lloyds also posted a further £700m for PPI mis-selling but said the end of the liabilities was in sight. It said it sold its Swiss private bank two years ago.