Lloyds Banking Group (LON:LLOY) reported an increase in profit for the first half of the year, after a fall in its PPI charge.
Underlying profit rose by 7 percent to £4.2 billion in the six months to June, with statutory profit before tax up 23 percent to $3.1 billion. Total income came in 2 percent higher at £9 billion.
The positive results were largely down to a decrease in its PPI charge to £550 million, which included an additional £460 million in the second quarter and would cover claims volumes of approximately 13,000 per week until the deadline in August 2019.
Net interest income came in at £6.3 billion, up by 7 percent, as improved net interest margin and increased average interest-earning banking assets rose 1 percent to £436 billion.
“Given the strong performance, the Group now expects net interest margin for 2018 to be in line with the first half of 2018 and for the margin to remain resilient over the plan period,” the group said.
“We now expect net interest margin to be in line with the first half of the year, the asset quality ratio to be less than 25 basis points and for capital build to be c.200 basis points, at the top end of our guided range. All other longer term guidance remains unchanged”.
Shares in Lloyds Banking Group are currently up 2.08 percent at 63.68 (0928GMT).
