Lloyds Bank shareholders set to be rewarded as profits are on the rise

Oliver Gill
Follow Oliver
Lloyds Bank Slash 3,000 Jobs After Brexit Economy Warning
The government has sold its final slug of Lloyds shares (Source: Getty)

Lloyds Bank profits are set to swell when it announces its half-year results on Thursday.

The lender’s bottom line is expected to rise by almost a fifth according to analysts.

Profit before tax is forecast to be £2.9bn, with the firm paying a £1.6bn, or 1p per share, dividend, Investec said.

Read more: Lloyds compensates just five of the 67 HBOS fraud victims

Lloyds performance has been hampered by large compensation payouts for PPI mis-selling. It is anticipated to set aside a further £400m more in costs. So far it has paid out more than £17bn in redress since 2011.

In June, competition watchdogs gave the thumbs up to Lloyds' £1.9bn takeover of US credit card firm MBNA.

Accendo Markets analysts compared Lloyds’ “generous dividends” with Royal Bank of Scotland, which is yet to return to paying dividends. They highlighted a comparatively small investment banking division means lower risk and less impact from Brexit.

Read more: Tap and go: Lloyds completes first takeover since Halifax

Related articles