Lloyds has released its first half year results for 2022, showing quite a strong financial performance.

Lloyds has announced pre-tax profits of £3.66 billion ($4.5 billion) for the first six months of June, 6 per cent lower than the same period in 2021, but still beating expectations.

Statutory profit after tax reached £2.8 billion, compared with £3.9 billion the same time last year, Lloyds added in a statement. This was due to the higher net income being more than offset by the non-repeat of the significant impairment release and the deferred tax credit in the first half of 2021. Underlying profit before impairment was up 34 per cent to £4.1 billion in the first half of 2022, driven by strong net income growth, the bank said.

The bank reported strong revenue growth, supported by a continued recovery in customer activity and UK bank rate changes. Net income reached £8.5 billion, up 12 per cent, with higher net interest and other income as well as a continued low operating lease depreciation, the bank added.

Operating costs reached £4.2 billion, up 5 per cent compared with the first half of 2021, reflecting stable business-as-usual costs and higher planned strategic investment and new businesses. It also continues to expect operating costs of around £8.8 billion on the new reporting basis, the bank said.

The group also experienced good organic growth in insurance and wealth assets under administration, with over £4 billion net new money in open book AuA over the period. In total, open book AuA stands at £156 billion, Lloyds added.

In respect of the first half of 2022, the board has announced an interim ordinary dividend of 0.80 pence per share, an increase of about 20 per cent on the previous year and in line with its progressive and sustainable ordinary dividend policy, the bank said.

Despite the lower first-half earnings, Lloyds has increased its dividend and full-year profitability forecast. It has also raised its forecast for return on tangible equity, a key measure of profitability, to 13 per cent for 2022.

Welcoming the results, Charlie Nunn, group chief executive, said: “Our strong financial performance demonstrates the resilience of our business model and customer relationships, and has enabled us to enhance guidance for 2022.”

“Just as we remain well placed to withstand the current macroeconomic uncertainty and continue to generate significant capital for our shareholders, so too do we remain committed to maintaining the support we give to our customers every day as they adapt to the challenges they face,” he added.