Proactive Investors - Lloyds Banking Group PLC (LON:LLOY) reported a fall in first-half profits but hiked its interim dividend 15% and kept full-year guidance unchanged.
Statutory profit before tax from the UK’s largest lender came to £3.32 billion for the first six months of 2024, slightly ahead of the £3.21 billion average analyst forecast.
Profit fell as net income declined 9% to £8.39 billion and operating costs rose 7%, partly offset by a £560 million lower impairment charge.
Net interest income fell 10% as the net interest margin declined to 2.94% from 3.18% a year earlier and 2.95% at the end of March.
For the full year, management continued to guide to a banking net interest margin of greater than 2.90%.
The CET1 capital ratio ended June at 14.1%, up from 13.9% at the end of the first quarter, significantly above the bank’s mid-term target of nearer 13% by 2026, with the other guidance, including for the CET1 capital ratio to be paid down to around 13.5%.
An interim ordinary dividend of 1.06p per share was declared, up 15% on a year ago, which will cost £662 million in total.
CEO Charlie Nunn said the bank had delivered “robust financial results with solid income performance and cost discipline alongside strong capital generation”.
“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,” he said.