Lloyds Banking Group

Liontrust's Jamie Clark explores how challenger banks have fared in their aim to create more competition.

Fund managers have been clamouring to add banks, including RBS and Lloyds, to their portfolios ahead of a rate rise from the Bank of England.

Lloyds has announced an interim dividend payment of 0.75p per share in its half year results, but the banking giant said it would also consider special dividends in the future.

Strong performance from financials bumped up UK payouts to a second quarter record of £29.2bn this year, according to the latest Capita Dividend Monitor.

Matt Hudson, manager of the £694m Schroder UK Alpha Income fund, has increased his weighting to banks, despite industry concerns about the threat to dividends from the record level of regulatory fines imposed recently.

The first new private bank in the UK for over thirty years has officially launched, after gaining approval from regulators.

FTSE 350 companies will pay out £86.3bn in dividends this financial year, while oil majors should be able to maintain payouts despite tough trading conditions, according to Markit.

Shares in TSB Banking Group have soared after news emerged it is in takeover talks with Spanish bank Sabadell.

Will challenger banks take Lloyds’ throne?

The share price of Standard Chartered plummeted this morning after the bank announced a 16% drop in operating profit in the third quarter.