Lloyds Banking Group reported a £995m loss in its wealth, asset finance and international arm.
However there was substantial growth reported in its wealth division where the retail bank made a profit of 17 per cent bringing the first half figure to £176m, compared with £151m a year earlier.
This was a sharp rise from the final half of 2011 when profits dipped to £136m.
The bank reported total income decreased 21 per cent to £1.5bn from £1.9bn in June 2011 across its wealth, asset finance and international division.
Cost:income on the rise
It also reported that cost:income ratio in the first half of the year at the division was 70.7% compared with a cost: income ratio of 75.6% in the second half of 2011 and 73.4% in the first half of last year.
Funds under management in the group’s private and international banking division dropped from £14.3bn as at June 30 2011 to £12.1bn in the first half of 2012.
Lloyds did not report updated asset under management figures but said that customer deposits grew by 18 per cent in the last six months and 36 per cent on a year-on-year basis.
Lloyds to invest heavily in wealth division
The British financial institution said they would be investing significantly in its wealth division and hope that it will provide strong growth opportunities.
“We aim to increase our market share in UK and international wealth primarily through growing the amount of customer deposits and funds under management that we manage on behalf of franchise customers, whilst improving margins and operating efficiency,” the bank said.
In working towards achieving their strategic aims the bank also said it has been restructuring its businesses.
It reported five key changes that are being made which include plans to simplify the banks wealth, assets finance and international operations making them more efficient by creating a shared support infrastructure.