Partly state owned bank Lloyds Banking Group has returned to profit, posting pre-tax profit for the first six months of the year of £1.6 billion.
This compares with the £3.95 billion loss for the same period last year.
The Group said it lent £14.9 billion of gross new mortgages to UK homeowners and £23.7 billion of committed gross lending to UK businesses.
Total impairments were significantly lower than originally envisaged at £6.6 billion, down from £13.4 billion during the first half of 2009.