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Lloyds Banking Group reports £2.4bn profit for H1
Lloyds Banking Group has posted £2.4bn profit after tax for the first half of 2024, lower than the £2.9bn it generated a year earlier.
This was also down on the £2.6bn profit that Lloyds Banking Group saw in the six months to December 2023.
Its net interest income (NII) came to £6bn, a reduction from £6.8bn in H1 last year. This was lower than the NII figure of £6.5bn in the preceding six-month period.
The group did not disclose its gross lending figure for the period but said its mortgage balances increased by £700m annually to £307bn.
The average loan to value (LTV) of its overall book was 43%, down from 43.6% in December.
The share of mortgages with an LTV higher than 90% contracted from 2.9% in December to 1.4% in the six months to June.
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The average LTV of new loans issued by Lloyds Banking Group increased from 61.7% in December to 62.9% by the close of the half-year period.
It said new mortgage lending remained “attractive from a strategic and economic value perspective”.
Lloyds Banking Group reported a reduction in new to arrears and flows to defaults among its customers in both the half-year and second quarter period. It reported that 1.5% of its book was accounts in arrears.
The net interest margin (NIM) was 2.94% in H1, a notable drop on the 3.18% margin it had during the same period last year. Its NII also fell annually from £7bn to £6.3bn.
Charlie Nunn, group chief executive of Lloyds Banking Group, said: “In the first six months of 2024, the group delivered robust financial results with solid income performance and cost discipline alongside strong capital generation. 2024 is a key year for our strategic delivery. We continue to deliver on our strategic transformation, as illustrated in the fourth of our investor seminars last month.
“We remain on track to meet our 2024 targeted outcomes.”
He added: “Indeed, our progress to date enables us to reaffirm 2024 guidance and remain confident in achieving our 2026 strategic objectives and guidance. Guided by our purpose, we continue to support customers in reaching their financial goals and successfully transform our group. This underpins our ambition of higher, more sustainable returns that will deliver for all of our stakeholders as we continue to Help Britain Prosper.”