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* H1 pretax profit 3.9 billion pounds
* Bank buys wealth platform Embark
* Dividend restored as bad loan fears recede
(Adds details)
By Iain Withers and Lawrence White
LONDON, July 29 (Reuters) - Lloyds Banking Group
swung to a first-half profit on Thursday and announced an
interim dividend, boosted by a house buying frenzy and improved
economic outlook in Britain.
Lloyds posted pretax profit of 3.9 billion pounds ($5.4
billion) for the six months to June, ahead of the 3.1 billion
pound average of analyst forecasts compiled by the bank.
The bank had posted a first-half loss of 602 million pounds
the previous year, after setting aside billions to cover
potential bad loans due to the COVID-19 pandemic.
Lloyds also announced a 0.67 pence interim dividend, a day
after rival Barclays unveiled more than $1 billion worth of
shareholder payouts.
The bank confirmed the acquisition of digital savings and
retirement group Embark, adding 410,000 customers and 35 billion
pounds of assets.
Like rivals, Lloyds is looking to expand in wealth
management amid a pandemic-driven savings boom, to make up for
squeezed margins from record low Bank of England rates.
The bank released 656 million pounds of its bad loan
provisions, after upgrading its economic forecasts following a
rapid rollout of COVID-19 vaccines in Britain.
But its results were weighed down by 425 million pounds of
"remediation charges", including compensation for historic fraud
at its HBOS Reading branch and a previously disclosed fine for
misleading insurance customers.
Lending increased by 7.5 billion pounds as the economy began
to open up during the period, but was again outstripped by
growth in deposits - up 23.7 billion pounds as customers
continued to build up savings.
Lloyds is in the midst of a shake-up of its top team after
long-standing boss Antonio Horta-Osorio left in April to become
chairman of Credit Suisse.
Finance director William Chalmers is running the bank before
HSBC veteran Charlie Nunn takes the helm next month. Nunn and
chairman Robin Budenberg – who stepped into his role in January
– are expected to devise a refreshed strategy for the bank.
($1 = 0.7178 pounds)
(Reporting by Iain Withers and Lawrence White
Editing by Rachel Armstrong and Mark Potter)
