Lloyds reports £1.6bn profit

LLOYDS Banking Group has reported a return to profit for the first half of the year – fuelled by a fall in the amount set aside to cover bad loans.

Pre-tax profit for the six months to the end of June came in at £1.6bn, compared with a £4bn loss in the same period a year earlier.

Funds set aside to cover bad loans fell from £13.4bn to £6.5bn.

Northern Rock has already reported reported a return to profit for the period, while HSBC posted a profit of £7bn.