Lloyds Banking Group to pay dividend for first time since being bailed out in financial crisis

Lloyds Banking Group is recommending paying a dividend for the first time since it was rescued by British taxpayers after reporting net income of 1.13 billion pounds ($1.7 billion) compared with a loss in 2013.

Chief Executive Antonio Horta-Osorio says the results published Friday demonstrate that Lloyds' capital position has improved significantly, enabling a dividend for the first time in six years. The bank plans to pay 0.75 pence per share, resulting in a total payout of 535 million pounds.

Horta-Osorio says it is a "symbolic development that bears testament to our successful transformation and improved risk profile of the business."

The bank also plans to spend 1 billion pounds over the next three years to improve mobile and online services and cut costs by an additional 1 billion pounds.