The part state-owned bank has also returned to profit, reporting gains of £2.1bn in the first half of the year in a turn-around of fortunes following losses of £456m in the same period last year.
In its mid-year report it revealed a 6% reduction in costs and a 43% reduction in impairment charges to £1.8bn from £3.1bn the same time last year.
In a statement to the stock exchange, the group said it expected a net interest margin of around 2.1% for the full year, and anticipated reaching a non-core asset target of less than £70bn by the end of 2013, 12 months ahead of schedule.
The group also stated it had set new targets for further improvement, having achieved a number ahead of schedule, and it was better able to respond to changes in the economic and regulatory environment.
The statement read: “Much of the work required to strengthen our balance sheet, through improving our funding, liquidity and capital positions, is now complete. At the same time, we now have greater certainty on the regulatory environment following announcements on the capital framework by the UK’s Prudential Regulation Authority (PRA) and by the European Commission on CRD IV capital requirements.
“As a result, we remain confident in our capital position, and continue to expect to meet the PRA’s additional capital requirements, announced on 20 June, without recourse to further equity issuance or the utilisation of additional contingent capital securities.”
The bank also stated it was to hold discussions with the regulator about restarting dividend payments.
A recent survey by Hargreaves Lansdown revealed the public favour Lloyds over the other part state-owned bank RBS. Find out more here.
