Former Halifax shareholders could be in for a bumper dividend payment on Thursday when parent company Lloyds announces full year results.
Lloyds, which employs 6,000 people in Calderdale, was in talks with the Bank of England over the weekend to win approval for a payout of more than £2bn to shareholders, according to The Sunday Times.
Lloyds declined to comment.
If Antonio Horta-Osorio, chief executive of the bailed-out lender, can convince the regulator that Lloyds has sufficient reserves to afford the payout, take another hit on mis-selling compensation and withstand a possible economic slowdown, a shareholder pay-out could be announced.
It is understood Mr Horta-Osorio would like to pay about £1.5bn, or 2p a share, in an ordinary dividend and £500m or more in a one-off special dividend.
Lloyds is expected to reveal hefty mis-selling charges when it posts results on Thursday.
Analysts predict the bank will stomach a £2bn charge for payment protection insurance (PPI) mis-selling in the fourth quarter, followed by a £1.1bn hit for 2016/17.
Pre-tax profits are expected to hit £1.24bn, according to analysts at Jefferies, with net interest income coming in at £11.5bn over the same period.
Lloyds announced a fourfold rise in annual profits to £1.8bn last year.
On Friday RBS will post its eighth year of annual losses. The lender revealed last month that it would remain in the red after taking a £2.5bn hit on charges for mis-selling scandals.