Lloyds says won't need to issue new equity, CoCos
LONDON (Reuters) - Lloyds Banking Group said on Wednesday that it would be able to meet new capital requirements without having to issue new equity or contingent capital, after Britain's financial regulator updated the bank on its position.
Lloyds said it was confident in its capital position and re-affirmed previous targets for its core tier 1 ratio.
"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," said Lloyds Chief Executive Antonio Horta-Osorio.
The Bank of England said in March that Britain's banks must raise 25 billion pounds of extra capital by the end of the year to absorb any future losses on loans. It said at that time the Prudential Regulation Authority (PRA) would give banks specific guidance on their capital position by the end of May.
Lloyds said on Wednesday it had been informed of the outcome of the PRA's considerations and expected to meet additional capital requirements through its strongly capital generative core business and through the disposal of non-core assets.
Lloyds said it expected its core tier 1 ratio, taking into account new Basel III capital rules, to be above 9 percent by the end of 2013 and above 10 percent by the end of 2014.
(Reporting by Matt Scuffham; Editing by Sinead Cruise)
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