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Income up, statutory earnings down at Lloyds Banking Group

Staff writer |
Lloyds Banking Group underlying profit increased 5% to £8.1bn during the calendar year, with an underlying return on equity of 15% - up from 13.6%.

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Excluding TSB, which Lloyds sold to Spanish bank Sabadell in July, underlying profit grew 10%.

Total income was up by 1% to £17.6bn. Of that, net interest income grew 5% to £11.5bn, which the bank said was driven by further margin improvement to 2.63%. Other income was 5% lower largely due to disposals and run-off.

Lloyds Banking Group said there was some expected recovery in other income in the last quarter, despite a £60m impact from weather-related insurance claims.

Operating costs were lower at £8.3bn, despite the bank having additional costs from investment and simplification. Its cost-income ratio improved by 0.5 percentage points to 49.3%.

Lloyds Banking Group made a statutory profit before tax of £1.6bn, down from 2014's £1.8bn, due to increased PPI charges.

The bank's basic and diluted earnings per share were both 0.8p. That was down from 2014's figures of 1.7p and 1.6p respectively.

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