LONDON (dpa-AFX) - Lloyds Banking Group plc (LYG), a U.K.-based financial services group, on Thursday reported higher first-half profit, primarily helped by growth in net interest income and other income. The bank also announced a share buyback programme of up to £1 billion.
Profit before tax increased 23% to £4.293 billion from £3.504 billion in the prior year.
Underlying profit before impairment rose 21% to £4.832 billion from £4.003 billion a year earlier.
After tax, profit rose 23% to £3.123 billion from £2.544 billion. Earnings per share increased to 4.8 pence from 3.7 pence a year earlier.
Underlying profit grew 18% to £4.215 billion from £3.561 billion.
Net interest income rose 10% to £7.105 billion from £6.478 billion a year earlier, while other income increased 21% to £3.521 billion from £2.908 billion, driving total income up 13% year-on-year to £10.626 billion.
Underlying net interest income grew 9% to £7.278 billion from £6.655 billion, while underlying other income increased 11% to £3.310 billion from £2.969 billion. Net income rose 9% to £9.747 billion from £8.914 billion.
The banking net interest margin improved to 3.19% from 3.04%, while average interest-earning banking assets increased 4% to £475.7 billion from £457.8 billion. Return on tangible equity rose to 17.1% from 14.1%, and the cost-to-income ratio improved to 50.4% from 55.1%.
The board recommended an interim dividend of 1.58 pence per share, up 30% from 1.22 pence a year ago.
Looking ahead, the company expects fiscal 2026 underlying net interest income to be greater than £14.9 billion.
Lloyds also outlined its 2027 to 2030 target, expecting mid-single-digit net income compound annual growth (CAGR) and high-single-digit underlying other operating income CAGR.
On the LSE, Lloyds shares were up nearly 2% at 113.25 pence.
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