Lloyds Banking Group (LON:LLOY) is to pay up to £150 million to female members of its pension scheme following a landmark court ruling, the Guardian has reported. The news comes after the bailed-out lender updated investors on its performance last week.
Lloyds’ share price fell sharply in the previous session, giving up 1.54 percent to 56.83p. The shares underperformed the broader market selloff which saw the benchmark FTSE 100 index give up 64.54 points to close 0.92 percent lower at 6,939.56, pressured by geopolitical and global trade worries.
Lloyds faces £150m pension bill
The Guardian reported on Friday that the High Court had ruled that Lloyds should equalise pension payments for men and women, after three women brought a case against the bailed-out lender, complaining that their pension incomes were increasing at a lower rate than those of male counterparts.
Almost 3,000 members of BTU, the trade union representing Lloyds staff, later joined the case. While initial estimates suggested that the FTSE 100 group might have to find as much as £500 million to make up the shortfall, the newspaper notes that Mr Justice Morgan narrowed down the methodology to be used to calculate the payments, which will now be between £100 million and £150 million.
Lloyds “welcomes the decision made by the court and the clarity it provides,” a spokesperson for the lender said, as quoted by the Guardian, adding that “the group and the pension scheme trustee will be working through the details in order to implement the court’s decision”.
Analysts on bailed-out lender
Barclays and JPMorgan Chase & Co both reaffirmed Lloyds as an ‘overweight’ on Friday, without specifying a price target on the shares, while Cfra, which sees the blue-chip lender as a ‘buy’ set a valuation of 67p on the stock. According to MarketBeat, Lloyds currently boasts a consensus ‘buy’ rating and an average price target of 76.39p.