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Interim Results

Lloyds hikes divi as profits rise

27 July 2017 07:26

Lloyds Banking Group has reported a strong first half performance with improvements in underlying and statutory profit.

Underlying profit rose by 8% to £4.5 billion with underlying return on tangible equity of 16.6 .

Total income was 4% higher at £9.3 billion and net interest income of £5.9 billion was up 2% with improved margin of 2.82%. Other income was 8% higher at £3.3 billion.

Other highlights: - Operating costs 1 per cent lower at £4.0 billion. Market-leading cost:income ratio improved to 45.8 per cent

- Asset quality remains strong with impairment charge of £268 million, asset quality ratio stable at 12 basis points

- Loans and advances increased to £453 billion, including the benefit of the acquisition of MBNA

- Statutory profit before tax 4% higher at £2.5 billion, despite an additional £1 billion of conduct charges in the second quarter, primarily in respect of PPI

- Strong capital generation of c.100 basis points reflecting strong underlying performance with common equity tier 1 (CET1) ratio of 14.0% (13.5% post dividend); leverage ratio of 4.9%

- Tangible net assets per share of 52.4 pence (31 Dec 2016: 54.8 pence) after payment of 2016 final dividend of 2.2 pence per share and a 1.4 pence per share reduction from the acquisition of MBNA

The board has declared an interim ordinary dividend of 1.0 pence per share, up 18%, which, it said, was in line with the group's progressive and sustainable approach to ordinary dividends

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Related Company: LLOY

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