Lloyds announces return to profit

4 August 2010

Lloyds Banking Group has announced a return to profit in its results for the first half of 2010.

The British bank recorded pre-tax profit of £1.6 billion ($2.54 billion), a considerable turnaround on the £4 billion loss recorded for the same period in 2009.

Capital set aside to cover bad loans dropped from £13.4 billion to £6.5 billion.

Eric Daniels, group chief executive of Lloyds, said the results represent a "significant milestone" for the bank, which is 41 per cent owned by the taxpayer.

He added that Lloyds has established a strong business model to assist its recovery.

"Coupled with the gradual recovery in economic growth in the UK, we continue to believe that the group is well positioned to deliver a strong financial performance over the coming years," he stated.

Last month, Lloyds agreed to sell 40 private equity investments to new joint venture company Cavendish Square Partners, which it will have a 30 per cent stake in.

By Asim Shah

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