Lloyds Banking Group has reported statutory profit before tax of £2.45bn for the first half of 2016, a surge of 106% compared to £1.19bn the year ago.

The bank attributed the rise in profit to a significant reduction in conduct charges and the gain on sale of its stake in Visa Europe.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The bank's underlying profit for the period stood at £4.16bn, a decrease of 5% from £4.38bn in the prior year.

Lloyds Banking Group CEO Antonio Horta-Osorio said: “We have delivered a good financial performance in the first half of 2016, with robust underlying profit, a doubling of statutory profit and strong capital generation, along with continued progress on our strategic initiatives. Our differentiated, UK focused, retail and commercial business model continues to deliver, and our financial strength, coupled with our cost leadership and low risk approach, position us well in the face of current market uncertainty.”

For the first half ended 30 June 2016, net interest income increased 1% to £5.78bn from £5.71bn the year earlier. Total income dipped 1% year-on-year to £8.87bn from £8.97bn.

The group's leverage ratio at the end of 30 June 2016 was 4.7%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Horta-Osorio added: “The impact on the Group of the EU referendum is dependent on economic and political outcomes, which remain uncertain. However, in 2016 we now expect to generate around 160 basis points of CET1 capital pre dividend, due to the impact of the EU referendum, in particular the effect of FX rates on risk-weighted assets.

“Given the uncertainty, it is too early to determine the impact on our formal longer term guidance at this stage. However, while the business will remain highly capital generative, it is possible that this capital generation may be somewhat lower in future years than previously guided.”