Lloyds Banking swings to profit in H1 on lower credit losses; unveils dividend

Thu, 29th Jul 2021

High street banking group Lloyds Banking swung to a profit in the first half of the year and unveiled an interim dividend as better-than-expected macroeconomic performance led to a net impairment credit. For the six months ended 30 June 2021, pre-tax profit rose to £3.9 billion from £602 million year-on-year as net income rose 2% to £7.6 billion. 'Net income benefited from ;increased average interest-earning assets and a strengthened net interest margin in the second quarter of 2021, as well as some early signs of recovery in other income and a reduction in operating lease depreciating,' the company said. The bank reported a net impairment credit of £656 million as a result of 'an £837 million release, driven by improvements to the macroeconomic outlook for the UK, combined with robust credit performance,' it added. The company reintroduced a progressive and sustainable ordinary dividend policy, declaring an interim ordinary dividend of 0.67 pence per share. Lloyds Banking also announced that it intends to acquire the Embark Group, an investment and retirement platform business, for about £390 million. 'The acquisition of Embark will deliver a modern, industry-leading mass market, direct-to-consumer proposition, complementing the Group's existing advice offerings through Schroders Personal Wealth and Cazenove Capital,' the company said. Subject to regulatory approvals, the acquisition is expected to complete in the fourth quarter of 2021. Story provided by StockMarketWire.com

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