Lloyds confirms return to profit

Lloyds Banking Group has confirmed that it has returned to profit in the first six months of the year.

In its financial results for the six months to the end of June, the firm revealed that it made £2.1 billion, which compares with the £456 million loss it made last year.

Lloyds also stated that it increased its lending by one per cent – or £3 billion, over the first half of the year. The bank is currently 39 per cent owned by the UK government, but chancellor of the exchequer George Osborne is looking into selling those shares in the near future.

Speaking to BBC News, Gavin Oldham from stockbrokers Share Plc stated that there is likely to be an institutional placing with retail to follow.

"I would have thought that Lloyds would be quite keen to do that initial placing with the institutions as soon as possible, so we may see an announcement today, perhaps £5bn [worth of shares] or more," he added.

Shares in Lloyds Banking Group are up today (August 1st) on the back of its profits news.

At 08:45 BST, stocks were trading almost 6.5 per cent up on the start of the day's trading.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.