Figures from Lloyds’ annual results showed net lending at the bank grew in the second half of the year, helping propel the group to a pre-tax profit of £415m.
This compares to a loss of £606m during 2012.
Underlying profits rose by 140% to £6.2bn although the bank was forced to put aside a futher £1.8m at the end of the year for Payment Protection Insurance compensation.
Lloyds said it had passed its target of lending to 60,000 first-time buyers and had helped more than 80,000 customers purchase their first home by the end of the year, using loans worth over £9.7bn.
Its Halifax and Bank of Scotland brands launched products under the government’s Help to Buy mortgage guarantee scheme in October and had advanced loans of £79m by the end of the year.
This increase in high loan-to-value products saw Lloyds’ average LTV for new lending rise from 62.6% to 63.6% across the year.
The value of mortgages in more than three months of arrears (excluding repossessions) fell by £819m across the year to £8.8bn.
The bank’s outlook for 2014 said it expected net mortgage lending to continue to rise and reiterated its pledge to lend £10bn to around 80,000 first-time buyers in the next 12 months.
Chief executive Antonio Horta-Osorio is in line for a deferred shares bonus worth £1.7m and said the bank expects to return a dividend for the first time since the financial crisis later this year.
“These results, with group underlying profit more than doubled to £6.2bn, confirm that the group is returning to robust health, thanks to the commitment of our people and the consistent execution of the strategy we set out in June 2011,” he said.
“We have a strong business model and have made significant progress, despite our legacy issues, in improving our capital position and profitability in a sustainable way. As a result, the UK Government started the process of returning the group to full private ownership.
“We also expect to apply to the regulator in the second half of the year to restart dividend payments at a modest level and to deliver progressive and sustainable payments to shareholders thereafter. This will be another important milestone on our journey to rebuild trust and confidence in our group.”
