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Lloyds Banking Group sees big drop in pre-tax profit for H1 2014

English.news.cn   2014-07-31 19:41:10

LONDON, July 31 (Xinhua) -- Lloyds Banking Group, one of the main high street banks in Britain, Thursday announced that its profit before tax declined by nearly 60 percent year-on-year to 863 million pounds in the first half of 2014, due to the charge of "legacy issues".

Total underlying income in the first six months was 9,252 million pounds, slightly lower than the 9,464 million pounds of the same period a year earlier, said Lloyds in a statement.

Impairment over the period reduced dramatically by 28 percent to 758 million pounds, pushing the underlying profit of the first half year to 3,819 million pounds, higher than 2,902 million pounds a year earlier, said the bank.

The bank said the drop of pre-tax profit attributes to the charges of 1,100 million pounds for legacy issues, such as a further provision for Payment Protection Insurance, as well as a net charge of 1,136 million pounds relating to Enhanced Capital Notes (ECNs).

The Interim earnings per share has been therefore dwindled from 2.2 pence, or 0.022 pounds, of last year to 0.8 pence, data showed.

The group's Common equity Tier 1 ratio (CET 1), a gauge of financial stamina, strengthened to 11.1 percent at the end of June 2014 from the 10.3 percent a year earlier, figures also showed.

Antonio Horta-Osorio, Group Chief Executive of Lloyds, said in a statement in the first half of 2014, the group "substantially improved our underlying financial performance and delivered a statutory profit, despite further charges for legacy issues."

"We continue to be well placed to support and benefit from the strengthening UK economic recovery and to deliver strong and sustainable returns to shareholders. As a result, and as previously stated, we will be applying to the Prudential Regulatory Authority (British financial regulator) in the second half of 2014 to restart dividend payments, commencing at a modest level," said Jenkins.

A day before, PRA announced plans to claw back rule-breaking banker' bonuses up to seven years after they had been awarded, in order to improve individual responsibility and accountability in the banking sector.

Earlier this week, Lloyds announced that it has reached settlements totalling 218 million pounds to resolve with British and United States authorities legacy issues regarding the manipulation of London Interbank Offered Rate (LIBOR) and Sterling Repo Rate. (1 pound = 1.69 U.S. dollars)

Editor: yanting
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