Lloyds insists it can meet capital demands

LLOYDS Banking Group today insisted it will not need additional help to meet regulatory demands for a bigger buffer against future financial shocks.

By The Newsroom
Wednesday, 22nd May 2013, 11:13 am
Lloyds insisted it will not need additional help to meet regulatory demands for a bigger buffer against future financial shocks.
Lloyds insisted it will not need additional help to meet regulatory demands for a bigger buffer against future financial shocks.

The bank said its additional capital requirements will be met without having to fundraise through the issue of new shares or securities.

The update, which follows a review of the banking sector’s capital strength by the new Prudential Regulation Authority, said Lloyds should be able to rely on capital generated from its core business and non-core disposals.

The Bank of England recently revealed a £25 billion capital hole among Britain’s major lenders - with Lloyds, Royal Bank of Scotland and Barclays believed to account for £9 billion of the shortfall between them.

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The group is selling off a raft of assets, including a recent deal for a 20% stake in wealth manager St James’s Place.

Lloyds expects its core capital ratio to be above the industry benchmark of 9% at the end of this year and higher than 10% by the end of 2014.

Chief executive Antonio Horta-Osorio said: “We are pleased with the substantial progress being made in the delivery of our customer-focused strategy.

“Our strong capital position enables the group to actively support growth and lending in the UK economy as well as delivering sustainable results for our shareholders.”