The first half financial results announced by the British bank giant Lloyds Banking Group on the 27th of July showed a slight decrease in profits. However, the full-year outlook has been revised upward against the backdrop of a rapid rise in interest rates.



Profit before tax for January-June was £ 3.7 billion. It fell from £ 3.9bn in the year-ago quarter but exceeded the average analyst estimate (£ 3.2bn) compiled by the bank.


In the first half of the year, an impairment loss of £ 377 million was recorded due to the worsening economic outlook. In the previous year, the allowance was reinstated as the economy recovered from the lockdown (city blockage) against the new coronavirus.


Inflation has accelerated to the level of 40 years and interest rates have risen in the UK, raising concerns about a recession.


However, Lloyds points out that the financial situation is strong at this point. He raised the outlook for return on tangible shareholders' equity (ROTE), a key indicator of profitability, to 13% this year, up from the March forecast (over 11%).