Lloyds returns to profit

PART-nationalised bank Lloyds has returned to profit for first time since its controversial takeover of HBOS, the company said this morning.

Lloyds recorded pre-tax profits of £1.6bn for the first half of 2010 compared to a £3.96bn loss in the first six months of 2009. Statutory profit before tax was £1.3bn

Banks that received help from the Government during the financial crisis have come under fire for not extending greater support to UK businesses.

But Lloyds this morning reported robust gross lending with the group extending £14.9bn of gross new mortgages to UK homeowners and £23.7bn to UK businesses.

Chief executive Eric Daniels said: “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. 

“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.”

LLoyds said is plans for the integration of its business was ahead of schedule and it was on track to deliver £2bn of synergy savings by the end of 2011. The company made losses of £6.7bn in 2008 and £6.3bn in 2009 which were largely blamed on the costs of taking over HBOS and Lloyds faced criticism over the way it had conducted the deal.