Rain

Rain

max temp: 15°C

min temp: 4°C

ESTD 1874 Search

UK: Lloyds Bank profits rise to £863million

10:00 31 July 2014

Profits are up at Lloyds Banking Group

Profits are up at Lloyds Banking Group

PA Wire/Press Association Images

Lloyds Banking Group has posted a half-year profit of £863 million, despite setting aside another £600 million to cover mis-sold payment protection insurance (PPI).

shares

The group, which is 25% owned by the taxpayer, said it “substantially improved” its financial performance in the six months to June 30, with profits excluding the PPI charge up 32% to £3.8 billion.

The overall profit of £863 million came despite a hit of £1.1 billion to cover legacy issues, including its £217 million fine this week for rate-rigging which included ripping off the Bank of England over its financial life-support scheme.

The group’s £600 million increase in its provision for expected PPI costs in the second quarter brought the running total to £10.4 billion, of which more than £2 billion relates to anticipated administrative costs.

Lloyds is forecasting a slower decline in complaints levels, with the increased provision accounting for an extra 155,000 complaints.

Lloyds shares opened 1% higher after the group upgraded its net interest margin - a key measure of profitability - to around 2.45% for the full-year.

It added that it remains on track to restart dividend payments in the next year, subject to the approval of the Prudential Regulatory Authority.

Chief executive Antonio Horta-Osorio plans to issue an update on his proposals for the group in the autumn.

He said: “It has been a successful first half for the group. With our initial three-year strategic plan now substantially complete, we are progressing our plans for how we will take the group forward into 2015 and beyond, and take advantages of the new growth phase of the UK economy.”

The Halifax owner said it provided one in four of all mortgages to first-time buyers in the first half, with lending of £5.7 billion to more than 43,000 customers.

Overall new mortgage lending was £20 billion - £6 billion higher than in the first half of 2013 - while it said it has lent almost £1 billion through the Government’s Help to Buy mortgage guarantee scheme.

The company added that around 10% of its new residential mortgages were written at a loan-to-income ratio at or greater than a 4.5 multiple.

Royal Bank of Scotland, which is 80% owned by the taxpayer, said last week that it nearly doubled underlying profits to £2.65 billion in the first half of the year, despite an extra £250 million hit for mis-selling financial products.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Sainsbury's chief executive Mike Coupe.
Photo: Sainsbury's/PA Wire

The City will this week look for details of how Sainsbury’s plans to overhaul Argos when the supermarket posts its annual results next week, while trading at rival Morrisons and banking giant HSBC will also be in the spotlight.

Avanti supports CLIC Sargent charity

Networking group getting Muddy and wiggy for young cancer patients

Nick and Kim Hoare from Ivy Grange Farm near Halesworth who run a glamping site with five yurts.
Photo: Nick Butcher

A glamping firm hoping to banish memories of sodden sleeping bags and leaking tents is catching the eye of campers after an upmarket break.

Royal Bank of Scotland has reported a sharp increase in first quarter losses.

Royal Bank of Scotland has reported a first-quarter pre-tax loss of £968million, more than double last year’s figure of £446m.

Tom Boother is running from Land's End to John O'Groats in aid of EACH and Great Ormond Street. Marquis Suffolk is lending Tom a motorhome for him to sleep in during the challenge.

Tom’s charity challenge - running 816 miles from Land’s End to John O’Groats

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View
HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24