LYG Lloyds Banking Group Plc

   By Max Colchester 
 

LONDON--Lloyds Banking Group PLC (LLOY.LN) said it turned a profit in the first half of the year but warned that Brexit could buffer the U.K. economy in the months to come.

Revenue at the lender notched 18.43 billion pounds ($24.19 billion) compared with GBP11.35 billion a year ago. Net profit came to GBP1.59 billion compared with a GBP211 million loss in the same period last year.

Following the Brexit vote shares in the lender have tumbled over fears that the Bank of England will cut interest rates and that the U.K. economy could stutter. The British retail bank, which is about 9% owned by the U.K. government, said in statement Thursday that "a deceleration of growth seems likely" following the U.K.'s decision to vote to leave the European Union.

"It is possible that this capital generation may be somewhat lower in future years than previously guided," the bank added.

In response Lloyds said it was dialing up its cost cutting, closing some 200 branches and axing 3,000 more jobs. Underlying profit, which strips out a series of one-off charges, came to GBP4.2 billion, 5% lower than last year. The bank announced a 13% increase in the interim ordinary dividend to 0.85 pence per share.

Write to Max Colchester at maz.colchester@wsj.com

(END) Dow Jones Newswires

July 28, 2016 02:55 ET (06:55 GMT)

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