Lloyds Banking Group has revealed a contemporary £700m provision for dangerous loans within the powerful economic system however raised dividends to shareholders on the again of rising income.

Britain's largest mortgage lender, which additionally contains the Halifax, Bank of Scotland and Scottish Widows manufacturers, reported pre-tax income of £3.9bn for the six months to June.

That was up on the £3.1bn achieved in the identical interval final yr because it benefited from increased rates of interest imposed on prospects as a consequence of Bank of England motion versus inflation.

Lloyds stated that whereas it had put aside additional cash - on prime of £1.5bn final yr, to cowl the price of mortgage defaults, it was proactively working with prospects to handle their obligations and assist these with financial savings to get the perfect charges.

Lloyds is the primary of the so-called huge lenders to replace the City on their progress throughout 2023.

Barclays and NatWest - the latter at present gripped by the departure of its chief govt over her dealing with of the Nigel Farage de-banking row - will report on Thursday and Friday respectively.

It is the sector's closing set of outcomes earlier than a brand new rule on customer support comes into drive.

The so-called client obligation, which kicks in from Monday, requires all companies regulated by the Financial Conduct Authority (FCA) to display how they guarantee good outcomes for purchasers, together with useful and responsive customer support, helpful communications, and truthful worth for cash on merchandise.

There are mounting issues that the evolving price of dwelling disaster, exacerbated by the results of rising rates of interest, will show extra damaging this coming winter as a result of toll already inflicted on family budgets.

The FCA instructed companies simply on Tuesday they have to enhance how they work together with prospects to supply assist sooner.

It was a response to the watchdog's newest Financial Lives survey which discovered that 7.4 million folks unsuccessfully tried contacting their monetary providers suppliers throughout the 12 months to May 2022.

Content Source: information.sky.com