skip to content

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

Story provided by StockMarketWire.com

Related Company: LLOY

Info Point:

To buy or sell shares call our Dealing Room on 0113 243 6941.

Too much jargon? Our glossary will help make sense of things.

Find out more about our Share Dealing Services.

Client Area Access

» Secure Login

» Not registered yet?

-

Branch Finder

Redmayne-Bentley have High Street branches throughout the UK. Find your nearest branch.