Partly Cloudy

Partly Cloudy

max temp: 17°C

min temp: 10°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

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

Sarah Howard, president of Suffolk Chamber of Commerce, and Mark Pendlington, chairman of New Anglia Local Enterprise Partnership, at the celebration marking the first year of work by the New Anglia Growth Hub.

Supporters and staff from the New Anglia Growth Hub today celebrated its first year of work.

B&Q parent Kingfisher said it was ploughing on with a shake-up plan

B&Q parent Kingfisher said today it was ploughing on with a shake-up plan “at pace” as it reported a first quarter slide in sales at the DIY chain.

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Angus Berry, energy manager at Thames Water, and Richard Robey, sales and marketing director at Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

A Ryanair passenger plane after take off from Stansted Airport.

Budget airline Ryanair saw profits growth take off last year as a revamp designed to improve its image and attract business customers sent earnings soaring by 66%.

The New Anglia Growth Hub team, including its business growth advisers who offer free support to businesses in Suffolk and Norfolk.

New Anglia Growth Hub has beaten its target of providing support for 3,000 businesses in its first year.

Andrew Rowe, managing director of Concertus.

Andrew Rowe, managing director at Ipswich based Concertus Design & Property Consultants, has been appointed as finance director for SPACES, the new society that has been formed from a merger between SCALA (Society for Construction and Architecture in Local Authorities) and SCEME (Society of Electrical and Mechanical Engineers serving Local Government).

Greene King apprentice Tamara-Leigh Kirkham.

Greene King has been named VQ Large Employer of the Year for 2015, in recognition of its support for members of its workforce undertaking vocational qualifications (VQs).

Most read

Most commented

Topic pages