Lloyds Banking first-half profits decline

Lloyds Banking Group reported a drop in first-half profit on Thursday as costs rose.

In the six months to the end of June, statutory pre-tax profit fell 14% from the same period a year earlier to £3.32bn. This was due to lower net interest income and higher operating expenses, partly offset by a lower impairment charge, the bank said.

Underlying net interest income - the difference between what the bank earns from its lending activities and the interest it pays to depositors - declined 10% to £6.3bn, while operating costs rose 7%.

Meanwhile, the net interest margin was down to 2.94% from 3.18%.

Chief executive Charlie Nunn 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. Indeed, our progress to date enables us to reaffirm 2024 guidance and remain confident in achieving our 2026 strategic objectives and guidance."