Britain's biggest retail bank Lloyds says it returned to profit in the first half of 2010 from a loss a year earlier after lower bad debt charges boosted earnings.
Lloyds Banking Group said it made a pre-tax profit of £1.6 billion for the six months, compared with a loss of almost £4 billion a year earlier.
Total impairments fell to £6.55 billion from £13.4 billion a year ago against the backdrop of a stabilising economy, while lower costs also helped boost the company's profits.
But Lloyds said losses from loans continued to be high in its Irish business, which includes Bank of Scotland (Ireland). The bank said it had completed the closure of 44 Halifax branches in the Rpeublic by the end of June.
'We expect to deliver strong medium-term performance as the UK economy sees a gradual recovery,' Lloyds said in a statement.
LBG is 41% owned by the British government after a massive state bail-out at the height of the global financial crisis.
