Financial Results
Lloyds' First-Half 2023 Pre-Tax Profit Rises
Within its wealth business, deposits fell slightly on a year earlier while loans held steady.
Lloyds
Banking Group yesterday reported a 23 per cent year-on-year
rise in pre-tax profit for the six months to end-June 2023,
standing at £3.87 billion ($4.99 billion). After tax, profit rose
17 per cent, to £2.864 billion, the UK-listed lender said.
On an underlying basis before impairments, profit in the H1
period rose 16 per cent to £4.703 billion, according to a
statement from the bank. Total costs dropped 5 per cent to £4.483
billion in the six-month period.
Underlying net interest income rose 14 per cent to £7 billion;
other underlying income rose 7 per cent to £2.538 billion.
Lloyds said that at the end of June, it had a Common Equity Tier
1 ratio – a measure of its capital buffer – of 14.2 per cent,
which remains before its ongoing 12.5 per cent target.
Customer deposits in the wealth business fell 5 per cent
year-on-year to £12.2 billion; client loans were flat in the
wealth segment at £900 million.
In February this year, Lloyds’s board decided to return surplus
capital through a share buyback programme of up to £2.0 billion.
As at 30 June 2023, the programme had completed £1.5 billion of
the buyback, with about 3.3 billion ordinary shares purchased, it
said.
The lender said it expects its banking net interest margin to be
greater than 310 basis points in 2023; operating costs will be
around £9.1 billion and return on tangible equity will be greater
than 14 per cent.
