Lloyds Bank (LON:LLOY) reported its half year results this morning, seeing a 38% rise in pre-tax profits.
The results showed an underlying profit of £4,383 million, an increase of 15 per cent on the first half of 2014 but still below analysts forecasts. Profits for the six months to the end of June were £1.19bn, compared with £863m a year earlier.
In a statement in October, the bank set itself several targets in areas including sustainable growth and improving efficiency. The report this morning highlighted progress in these areas, with Lloyds remaining the largest provider of mortgages to first-time buyers and helping 1 in 4 customers to get on the housing ladder in the first half of the year.
The statement said showed progress in the efficiency of the running of the bank: “In the first six months of the year we have delivered run-rate savings of £225 million through our new Simplification programme as we continue to work towards our target of achieving a further £1 billion of savings by the end of 2017. These reductions, together with our strong underlying financial performance have resulted in further strengthening of our already market-leading cost:income ratio, which is now 48.3 per cent.”
However, Lloyds have had to set aside more than £13bn in compensation, after the FCA found the bank mis-handled complaints between March 2012 and May 2013. The bank was fined a record £117m by the Financial Conduct Authority (FCA) over the mis-sold PPI.
Lloyds’ chief executive Antonio Horta-Osorio said: “Today’s results demonstrate the strong progress we have made in the first half of the year.
“We remain focused on our aim to become the best bank for customer sand shareholders, while at the same time supporting the UK economy.”
