Lloyds bank posts biggest half-year profit in eight years

Bank records modest increase in profit; sets aside a futher £700m for mis-sold policies

Britain’s largest retail bank reported a statutory pretax profit of £2.5 billion , about 4 per cent higher than last year

Britain’s largest retail bank reported a statutory pretax profit of £2.5 billion , about 4 per cent higher than last year

 

Lloyds Banking Group reported its biggest half-year profit in eight years on Thursday and an increase in interim dividends despite a slowdown in the economy, in its first set of results since the bank exited government ownership.

Britain’s largest retail bank reported a statutory pretax profit of £2.5 billion (€2.8 billion), about 4 per cent higher than last year.

That was lower than the £2.86 billion estimate of analysts surveyed by the bank.

The modest increase in profit was driven by stronger income, but was tempered by a higher-than-expected bill for compensating customers mis-sold loan payment insurance in what is Britain’s costliest consumer scandal.

The bank set aside a further £700 million to compensate people mis-sold the insurance policies, nine months after saying it had hopefully drawn a line under the scandal.

Reuters