Lloyds reveals £1.6 billon first half profit

Lloyds Banking Group has revealed profits of £1.6 billion for the first half of 2010.

The £1.6 billion return is well ahead of the £4 billion loss made in the first six months of 2009 as the bank also revealed that money set aside from bad loans fell from £13.4 billion to £6.5 billion.

“The first half of 2010 was a significant milestone for Lloyds Banking Group as the group returned to profit”

Lloyds total income reached £12.5 billon for the first half of 2010, up from £9.8 billon 12 months ago, while total operating losses fell by 10% to £5.8 billon. The bank also offered £23.7 billon of committed gross lending to British businesses as well as extending £14.9 billion of gross new mortgages to British homeowners.

Lloyds made a £6.3 billon loss last year after bad debts ballooned following the take over of HBOS during the financial crisis. The taxpayer has a 41% stake in Lloyds after it was part nationalised by the government.

Eric Daniels, the chief executive officer of Lloyds, says: “The first half of 2010 was a significant milestone for Lloyds Banking Group as the group returned to profit. Despite the challenging economic environment, the core businesses performed strongly and we continued to see positive momentum across all of the key income statement line items: income, margins, costs and impairments and an extension of the positive business trends established in 2009. (article continues below)

“Given the business model we have established, 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.”