Lloyds Banking H1 Statutory Pretax Profit Rises - Quick Facts

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) reported first-half profit before tax of 2.45 billion pounds compared to 1.19 billion pounds, previous year. The Group noted that its statutory profit before tax included the 790 million pounds charge relating to the redemption of ECNs in the first quarter and conduct provisions of 460 million pounds. Profit attributable to ordinary shareholders increased to 1.59 billion pounds from 677 million pounds. Earnings per share was 2.3 pence compared to 1.0 pence.

Underlying profit was 4.2 billion pounds, which was 5 percent lower than the same period last year, driven by a slight decrease in income and an increase in the impairment charge from historically low levels. Underlying profit excluding TSB was 2 percent lower at 4.16 billion pounds, compared to 4.26 billion pounds, previous year. Underlying earnings per share decreased to 3.9 pence from 4.6 pence.

Total income was 8.87 billion pounds, which was 1 percent lower than in the first half of 2015, with a 1 percent increase in net interest income more than offset by a 5 percent reduction in other income. Net interest income increased 1 percent to 5.78 billion pounds. Net interest margin increased to 2.74 percent from 2.62 percent, last year.

Lloyds Banking has reaffirmed its 2016 guidance for net interest margin and cost:income ratio. The Group continues to expect net interest margin for the full year to be around 2.70 percent and for the cost:income ratio to be lower than the 49.3 percent reported in 2015. Lloyds Banking declared an interim ordinary dividend of 0.85 pence per share, up 13 percent.