Lloyds Banking Group, through its subsidiary HBOS plc, released its 2024 half-year financial results. The Group's profit before tax for the first half of 2024 was 462 million, compared to a loss before tax of 33 million for the same period in 2023. Total income for the period was 2,040 million, an increase of 14 per cent on the first half of 2023. Net interest income was 1,835 million, compared to 1,601 million for the same period in 2023. Operating expenses of 1,573 million were 9 per cent higher than in the first half of 2023, reflecting planned strategic investment, elevated severance charges, and continued inflationary pressure.

The Group recognized remediation costs of 41 million, largely in relation to pre-existing programs. Impairment was a net charge of 5 million compared to a charge of 379 million in the half-year to 30 June 2023. The Group recognized a tax expense of 124 million in the period, compared to a tax credit of 65 million in the first half of 2023, reflecting increased profits. Total assets of 327,811 million were 6,272 million higher, or 2 per cent, compared to 321,539 million at 31 December 2023. Total liabilities of 310,518 million were up 6,780 million compared to 303,738 million at 31 December 2023. Total equity decreased by 508 million from 17,801 million at 31 December 2023 to 17,293 million at 30 June 2024.

The Group's principal risks and uncertainties include macroeconomic uncertainty and elevated interest rates, which are contributing to the cost of living and associated implications for UK consumers and businesses. Asset quality remains strong with resilient credit performance throughout the period. The Group continues to monitor the impacts of the economic environment carefully through a suite of early warning indicators and governance arrangements that ensure risk mitigating action plans are in place to support customers and protect the Group's positions.