Lloyds Bank Corporate Markets plc has reported strong financial performance for the first half of 2024, with total income reaching 529 million and profit before tax at 293 million, resulting in a solid increase in return on tangible equity to 13.3 per cent. The markets performance has been successful, with the financial markets business ending the half-year in the top three for GBP interest rate swaps and increasing the volume of foreign exchange transactions traded. The bank has also made significant strides in sustainability issuance, ranking first in ESG-labelled bond issuances for both UK issuers and for all issuers raising funds in Sterling.
The bank has continued to invest in systems, launching the 'Lloyds Bank International' mobile application within the Crown Dependencies and 'Lloyds Bank Market Insights' publications, providing topical and timely thought leadership to clients. Lloyds Bank Corporate Markets aims to provide a first-class banking, financing, and risk management proposition, underpinned by excellent customer service. The bank's strategic aim is to deepen client relationships, expand institutional coverage, and drive collaboration opportunities within Lloyds Banking Group.
For the six months to 30 June 2024, total income was 529 million, comprising net trading income of 322 million, net fee and commission income of 153 million, and net interest income of 56 million. The capital and financial markets businesses have delivered a strong performance in 2024, with significant growth versus the comparative period resulting in a 122 million increase in net trading income. Net fee and commission income has increased by 16 million, driven by strong markets, particularly performance on bond issuances. However, net interest income is down versus the first half of 2023 due to changes in customer behaviors, increased cost of deposits, and a one-off gain recognized in 2023.
Operating expenses for the period were 250 million and predominantly consist of management charges relating to the intra-group agreement with Lloyds Bank plc and staff costs. Lloyds Bank Corporate Markets has maintained a strong cost discipline while being impacted by a sector-wide cost inflation. The bank's purpose-driven business model supports its customers with a range of products, including risk management, commercial lending, community banking, international private banking, bonds and structured finance, trade and working capital management, and sustainability-linked financing, all served via hubs in the UK, Jersey, Guernsey, Isle of Man, New York USA, and Frankfurt Germany.