Source: Sharecast
Half-year profits at the UK's biggest mortgage lender rose 23% to £3.8bn on the back of higher interest rates, missing estimates of £4bn. The bank said underlying net interest income rose14% to £7bn, although customer deposits of £469.8bn were £5.5bn lower.
However, it also set aside £662m for potentially bad loans, a rise of 76%, which helped send shares in the bank lower.
Lloyds hiked its interim dividend to 0.92p a share, up 15% from a year ago and the equivalent of £594m to shareholders. It also lifted return on equity guidance to more than 14% for the full year from 13%.
Net interest margin, the difference between savings and loan rates, fell slightly to 3.14% in the April-June quarter, from 3.22% in the first three months of the year. Lloyds said it expected this to fall to 3.10% this year instead of 3.05%.
Reporting by Frank Prenesti for Sharecast.com
