- Lloyds Banking Group delivered a modest beat on second-quarter profit expectations but said it expected its capital build for the year to come it at the lower end of expectations as it set aside more funds to meet a ramp in payment protection insurance claims.

The bank flagged an additional PPI charge of £550m in the second quarter driven by significant increase in information request volumes in the second quarter, ahead of the August deadline.

For the three months ended 30 |June 2019, adjusted pre-tax profit fell to £2.03bn from £2.2bn last year, but that was expectations from UBS for a profit of £1.9bn.

Total income of £4.4m, down from £4.65m, was slightly below expectations of £4.5bn.

The net interest margin – the difference between money earned on loans and paid on deposits – fell to 2.90% from 2.91%, in-line with analysts' estimates.

The CET1 capital build totalled 70 basis points with the group's pro forma CET1 ratio increasing to 14.6 %, pre dividend.

The company declared an interim ordinary dividend of 1.12 pence per share, up 5% on last year.

Looking ahead, the company expected its capital for the year to be at the lower end of its ongoing 170 to 200 basis points range, and for return on tangible equity to be around 12 %.

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