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

 
Oliver Gill
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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

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