Member Article

Lloyds Bank returns to profit

Lloyds Bank has announced a return to profit for the first time since its bailout in 2008.

The Bank reported staturtory pre-tax profits of £415 million and is expected to make substantial share payments to boss Antonio Horta-Osorio, under a deal with UK Financial Investments - the firm charged with managing the taxpayers stake in banks.

In September last year UK Financial Investments sold a 6% shareholding, and further sale to the public is expected before the next general election.

Mr Horta-Osorio said in a statement: “Over the last three years we have reshaped, strengthened and simplified our business to create a low-risk efficient retail and commercial bank that is focused on our customers and on helping Britain prosper.

“These results, with Group underlying profit more than doubled to £6.2 billion, confirm that the Group is returning to robust health, thanks to the commitment of our people and the consistent execution of the strategy we set out in June 2011.

“We have a strong business model and have made significant progress, despite our legacy issues, in improving our capital position and profitability in a sustainable way. As a result, the UK Government started the process of returning the Group to full private ownership.

And added: “We also expect to apply to the regulator in the second half of the year to restart dividend payments at a modest level and to deliver progressive and sustainable payments to shareholders thereafter. This will be another important milestone on our journey to rebuild trust and confidence in our Group.”

This was posted in Bdaily's Members' News section by Tom Keighley .