The Lloyds Banking Group, comparative to last year’s less pleasant recordings, have a pre-tax profit of £2.1bn. This has been recorded despite the bank deciding to store £500m in light of the PPI compensation claims that appear to be never-ending and are now recorded as totalling £7.3bn.
“The state-backed bank said it had made a statutory pre-tax profit of £2.1bn in the first six months of 2013, compared to a loss in the same period last year of £456m.
The profit also reverses a £150m loss for the second half of 2012.
Lloyds said it had spent £1.28bn so far this year dealing with the claims, including £380m on the administration of the compensation process.
The bank, 39pc owned by the government, said it will start talks with regulators in the coming months about restarting its dividend.
Antonio Horta-Osorio, the Lloyds' chief executive, said in statement: 'We are now well on track to create a bank with a leading cost position, lower risk, a lower cost of equity, and products and services focused on our customers' needs, to deliver strong, stable and sustainable returns to our shareholders.'
Bad debts at Lloyds fell 43pc to £1.8bn.
The government is expected to start offloading its £20bn stake in the bank with a sale of around a quarter of its shares.
Mr Horta-Osorio said that the lender was now in a position to enable the state to reduce its stake.
'It is up to the government to decide how and when to do it. I believe we have completed the first phase ... the share price is now in a position where the government can return taxpayers' money at a profit,' he said.
The shares sale could start as early as next month.
George Osborne said in his Mansion House speech in June that the Government was "actively considering options for share sales. He added: 'Of course, we will only proceed if we get value for the taxpayer.'
Lloyds shares rose 4.5 - or 6.6pc - to 73p in early trading on Thursday, well above the 61.2p break-even threshold set by the Treasury for a disposal of some of the state's holding.
Mr Horta-Osorio must see at least one-third of the state's holding sold at above 61.2p or the bank's share price rise above 73.6p by 2018 in order to receive his annual bonus. The clauses were inserted this year following discussions between Lloyds and the government.
The Lloyds chief said the hopes to float TSB Bank by mid 2014. The initial public offering follows the collapse of the sale of 600 branches to the Co-operative Group. The disposal was imposed by Brussels following the state bailout of the lender during the 2008 financial crisis.”
Lloyds have been in the headlines a lot recently in light of the new European Union laws regarding domination of the banking sector in the UK and this is just another thing for the group to be pleased with.
If you are a new or existing Lloyds customer and would like to speak with a member of their customer services department regarding any of the products and services they offer or anything discussed in this article, contact their customer services department via the Lloyds TSB contact number. You can also read more about Lloyds and the repercussions of the new European laws Here.
This article was originally sourced from The Telegraph.
“The state-backed bank said it had made a statutory pre-tax profit of £2.1bn in the first six months of 2013, compared to a loss in the same period last year of £456m.
The profit also reverses a £150m loss for the second half of 2012.
Lloyds said it had spent £1.28bn so far this year dealing with the claims, including £380m on the administration of the compensation process.
The bank, 39pc owned by the government, said it will start talks with regulators in the coming months about restarting its dividend.
Antonio Horta-Osorio, the Lloyds' chief executive, said in statement: 'We are now well on track to create a bank with a leading cost position, lower risk, a lower cost of equity, and products and services focused on our customers' needs, to deliver strong, stable and sustainable returns to our shareholders.'
Bad debts at Lloyds fell 43pc to £1.8bn.
The government is expected to start offloading its £20bn stake in the bank with a sale of around a quarter of its shares.
Mr Horta-Osorio said that the lender was now in a position to enable the state to reduce its stake.
'It is up to the government to decide how and when to do it. I believe we have completed the first phase ... the share price is now in a position where the government can return taxpayers' money at a profit,' he said.
The shares sale could start as early as next month.
George Osborne said in his Mansion House speech in June that the Government was "actively considering options for share sales. He added: 'Of course, we will only proceed if we get value for the taxpayer.'
Lloyds shares rose 4.5 - or 6.6pc - to 73p in early trading on Thursday, well above the 61.2p break-even threshold set by the Treasury for a disposal of some of the state's holding.
Mr Horta-Osorio must see at least one-third of the state's holding sold at above 61.2p or the bank's share price rise above 73.6p by 2018 in order to receive his annual bonus. The clauses were inserted this year following discussions between Lloyds and the government.
The Lloyds chief said the hopes to float TSB Bank by mid 2014. The initial public offering follows the collapse of the sale of 600 branches to the Co-operative Group. The disposal was imposed by Brussels following the state bailout of the lender during the 2008 financial crisis.”
Lloyds have been in the headlines a lot recently in light of the new European Union laws regarding domination of the banking sector in the UK and this is just another thing for the group to be pleased with.
If you are a new or existing Lloyds customer and would like to speak with a member of their customer services department regarding any of the products and services they offer or anything discussed in this article, contact their customer services department via the Lloyds TSB contact number. You can also read more about Lloyds and the repercussions of the new European laws Here.
This article was originally sourced from The Telegraph.
