UK bank Lloyds logs soaring profit on Covid recovery

British bank Lloyds said Thursday that first-half net profits surged  on lower-than-expected credit losses as the economy extended its  recovery from the Covid-19 pandemic.

Profit after tax soared to  3.9 billion ($5.4 billion, 4.6 billion euros) in the six months to June,  Lloyds Banking Group (LBG) said in a results statement.That compared  with slender net profit of 19 million one year earlier. LBG  released a total of 837 million that had been set aside to cover souring  loans during the pandemic.That compared with a vast impairment charge  of 3.8 billion last time around linked to the emergency health crisis.

"During  the first six months of 2021, the group has delivered a solid financial  performance with continued business momentum, bolstered by an improved  macroeconomic outlook for the UK," said interim chief executive William  Chalmers.

"While we are seeing clear progress in the vaccine  roll-out and emergence from lockdown restrictions, the coronavirus  pandemic continues to have a significant impact on the people,  businesses and communities of the UK.

The lender was also helped  by a booming domestic property market.Lloyds meanwhile unveiled a  390-million deal to buy savings and pensions firm Embark.Chalmers is  leading the bank until incoming new boss Charlie Nunn takes the helm in  August.

Rival Barclays had revealed Wednesday that its first-half  net profits jumped to 3.8 billion on the back of the improved economic  outlook.

In England, the bulk of lockdown measures were lifted last week after a phased easing of restrictions.

Tougher  curbs however remain across the rest of the UK.Nevertheless, the  highly-transmissible Delta coronavirus variant is forcing some countries  to reimpose restrictions.