Lloyds Banking H1 Profit Down; Long-term Targets Unchanged - Quick Facts

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) reported Wednesday that its first-half profit before tax declined 7 percent to 2.90 billion pounds from last year's 3.12 billion pounds.

Profit after tax fell 4 percent to 2.23 billion pounds from 2.32 billion pounds last year.

Earnings per share were 2.7 pence, down 7 percent from 2.9 pence a year ago.

The company recorded additional PPI charge of 550 million pounds in the second quarter driven by significant increase in information request volumes in the second quarter, ahead of the August deadline.

Underlying profit for the period was 4.19 billion pounds, compared to 4.23 billion pounds a year ago. The results reflected slightly lower net income and expected higher impairment offset by lower total costs.

Net income was 8.82 billion pounds, down 2 percent from 8.97 billion pounds last year.

Net interest income dropped 3 percent from last year to 6.15 billion pounds. Banking net interest margin was 2.90 percent, down from 2.93 percent last year.

Further, the bank announced interim ordinary dividend of 1.12 pence per share, up 5 percent, in line with progressive and sustainable policy.

Looking ahead, the bank expects fiscal 2019 net interest margin of about 2.90 percent, and operating costs to be less than 8 billion pounds and cost:income ratio to fall.

Beyond 2019, longer term targets remain unchanged although continued economic uncertainty could impact outlook.