Overcast

Overcast

max temp: 21°C

min temp: 11°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

Post Office services to return to Yoxford

The Post Office in a Suffolk town is moving to new premises, and will offer longer opening hours.

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Growth in manufacturing eased last month  to its slowest level in two years.

Britain’s manufacturing sector grew at its slowest pace in more than two years last month, impacted by subdued demand from Europe.

Speedy Hire
 has warned that its results for this year will come in

Tool rental business Speedy Hire saw nearly a third of its stock market value wiped off after it announced the shock departure of its chief executive and warned over a major blow to full year profits.

Greene King chief executive Rooney Anand.

Pubs and brewing group Greene King today posted another year of record revenues, with sales within its key Retail division topping £1billion for the first time.

Suffolk Coastal considers convenience store bid

Planning chiefs have responded to concerns about noise and antisocial behaviour arising from proposals for a new convenience store in Kesgrave by insisting on closing times being brought forward an hour and the installation of a barrier to restrict overnight parking.

Most read

Most commented

Topic pages