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Lloyds Bank Eyes Higher Returns by 2030
30 Jul
Summary
- First-half statutory profit reached £3.1 billion.
- Interim dividend increased by 30% and a £1 billion share buyback was announced.
- New strategy targets higher returns and cost savings through 2030.
Lloyds Banking Group has reported a robust first-half performance, with statutory profit after tax reaching £3.1 billion. Net income grew 9% year-over-year to £9.7 billion in the first half, and the group achieved a return on tangible equity of 17.1% for the period.
Supporting shareholder value, the interim dividend will rise 30% to £0.0158 per share, alongside a £1 billion interim share buyback. These actions represent over £1.9 billion in capital distributions for the first half. Lloyds has also unveiled a new strategy aiming for enhanced returns, continued income growth, and further cost savings through 2030.
Net interest income increased by 9% to £7.3 billion, driven by asset growth and improved net interest margins. Structural hedge earnings are projected to exceed £9 billion by 2030. Operating costs remained flat year-over-year, and the bank is on track to achieve a full-year cost-to-income ratio below 50%, with credit performance remaining stable.
