Lloyds Banking Group's subsidiary, Bank of Scotland plc, has reported its 2024 half-year financial results. The Group's profit before tax for the first half of 2024 was 427 million, compared to a loss before tax of 112 million for the same period in 2023. This was due to higher total income and a lower impairment charge, partly offset by higher operating expenses. Total income for the period was 2,039 million, an increase of 16 per cent on the first half of 2023. Net interest income was 1,833 million, compared to 1,565 million for the same period in 2023. Operating expenses of 1,608 million were 8 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 4 million compared to a charge of 378 million in the half-year to 30 June 2023. The Group recognized a tax expense of 116 million in the period, compared to a tax credit of 81 million in the first half of 2023, reflecting increased profits.
Total assets of 328,771 million were 6,341 million higher, or 2 per cent, compared to 322,430 million at 31 December 2023. Total liabilities of 312,602 million were up 6,771 million compared to 305,831 million at 31 December 2023. Total equity decreased by 430 million from 16,599 million at 31 December 2023 to 16,169 million at 30 June 2024. The movement reflected an interim dividend of 650 million, which was partially offset by attributable profit for the period.
The capital position of Bank of Scotland plc as at 30 June 2024, after applying IFRS 9 transitional arrangements, showed a common equity tier 1 capital of 10,859 million and a total tier 1 capital of 13,409 million.
These results indicate a positive financial performance for Lloyds Banking Group's subsidiary, Bank of Scotland plc, with increased total income and improved profit before tax compared to the same period in 2023. The Group's balance sheet also showed growth in total assets and liabilities, while the capital position remained strong.