The bank said that it has reduced its pre-tax loss to £439m for the first half of the current fiscal against a pre-tax loss of £3.25bn during the same period earlier year.
Lloyds bank chief executive Antonio Horta-Osorio said the bank delivered a resilient underlying performance in a challenging environment, with higher Group underlying profits and returns, and continued to make good progress on its strategy to be the best bank for customers, focused on its strong UK retail and commercial franchises.
"We continued to strengthen our balance sheet, while reshaping the business through reducing non-core assets, delivering increased savings from our Simplification program, and continuing to invest in growing our core business," Horta-Osorio added.
The bank has put aside £700m in cash to meet the demand of customers claims related to the sale of payment-protection insurance (PPI).
The European Union has forced the British bank to offload 632 retail bank branches to payback the government aid as well as to boost the capital base.
