LONDON, Aug 1 (Reuters) - Lloyds Banking Group said on Wednesday its pre-tax profit for the first half of 2018 jumped by 23 percent to 3.1 billion pounds ($4.06 billion), broadly in line with expectations despite another hefty provision for insurance mis-selling.
Britain’s biggest mortgage lender was predicted to book 3.2 billion pounds in pre-tax profit for the period to end-June, according to a bank-compiled average of forecasts provided to Reuters by an analyst. Lloyds laid out a fresh three-year strategy in February.
The bank took a fresh 460 million pound provision for the mis-sale of payment protection insurance (PPI), a scandal that has cost the bank 18.8 billion pounds so far and that Lloyds had hoped to draw a line under already.
It reported a common equity tier one capital ratio - a measure of banks’ financial strength - of 15.1 percent pre-dividend. The bank would pay an interim dividend of 1.07 pence per share, it said. ($1 = 0.7633 pounds) (Reporting by Emma Rumney and Lawrence White, editing by Sinead Cruise)