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High street banking group Lloyds Banking swung to a profit in the first half of the year and unveiled an interim dividend as better-than-expected macroeconomic performance led to a net impairment credit.
For the six months ended 30 June 2021, pre-tax profit rose to £3.9 billion from £602 million year-on-year as net income rose 2% to £7.6 billion.
'Net income benefited from ;increased average interest-earning assets and a strengthened net interest margin in the second quarter of 2021, as well as some early signs of recovery in other income and a reduction in operating lease depreciating,' the company said.
The bank reported a net impairment credit of £656 million as a result of 'an £837 million release, driven by improvements to the macroeconomic outlook for the UK, combined with robust credit performance,' it added.
The company reintroduced a progressive and sustainable ordinary dividend policy, declaring an interim ordinary dividend of 0.67 pence per share.