Lloyds Banking Group has reported a statutory profit before tax of £2.134 billion for the first six months of the year.
This compares to a £456 million loss for the same period last year.
Unlike Barclays, which announced plans to launch a share issue to help plug a hole in its capital position, Lloyds remains confident that it will not have to follow suit.
António Horta-Osório, group chief executive, said: “Much of the work required to strengthen our balance sheet, through improving our funding, liquidity and capital positions, is now complete. At the same time, we now have greater certainty on the regulatory environment following announcements on the capital framework by the UK’s Prudential Regulation Authority (PRA) and by the European Commission on CRD IV capital requirements.
“As a result, we remain confident in our capital position, and continue to expect to meet the PRA’s additional capital requirements, announced on 20 June, without recourse to further equity issuance or the utilisation of additional contingent capital securities.”
Gross new mortgage lending was £14.5 billion in the first half of 2013 compared to £12.3 billion in the first half of 2012, an increase of £2.2 billion.
