Britain’s state-rescued Lloyds Banking Group has reported a pre-tax profit of £863 million for the first half of 2014, down 58% from £2.1 billion a year ago.
The bank’s performance was hit by £1.1 billion of legacy charges, including this week’s £217-million fine for its role in the Libor interbank rate-rigging scandal.
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Profit attributable to ordinary shareholders decreased to £574 million from £1.56 billion. Earnings per share was 0.8 pence, compared to 2.2 pence.
The UK Treasury reduced its shareholding in Lloyds Banking Group from 32.7% as at 31 December 2013 to 24.9% as at 30 June 2014.
Lloyds Banking Group chief executive Antonio Horta-Osario said:: "Addressing historic conduct issues continued to be a key theme in UK retail banks.
"The behaviours and actions identified by the investigations into these matters, including into submissions and communications between 2006 and 2009, were absolutely unacceptable."
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By GlobalDataAt the end of June 2014. the group’s Common equity Tier 1 ratio (CET 1) – a gauge of financial stamina- strengthened to 11.1% from the 10.3% a year earlier.
The bank meanwhile forecast that full-year statutory pre-tax profit would be "significantly" ahead of the first half, while it will seek in the second half to resume payment of shareholder dividends.
